Bitcoin evangelist claims Facebook’s Libra is unlikely to withstand global trade and currency wars
In an interview with Cryptonites, prominent Bitcoin advocate Andreas Antonopoulos spoke about his stance on Bitcoin being a safe haven asset during a financial crisis.
With the value of fiat currencies like the British pound and Chinese yuan falling, many speculate that the world is in for yet another financial crunch. The birth of Bitcoin is linked to the previous financial crisis that shook the world and the crisis was said to be activated by the private sector. Many conjectures suggest that the next potential crisis might be activated by both the public and the private sector.
This raises questions about Bitcoin’s role during a potential financial crisis in the future, whether the digital asset would stand strong and remain a safe haven asset. Antonopoulos noted the fact that the current financial system is more brittle than that of 2008. However, he hopes that there is no global recession. The Bitcoin evangelist added that he wishes to “normalize the economic systems with the help of cryptocurrencies.”
Antonopoulos also spoke about Facebook’s Libra being labeled as a global coin. The Bitcoin advocate believes that Libra can never be a global coin as it contradicts the terms “global” and “coin” themselves. Facebook’s Libra undermines easy border-less transactions that other cryptocurrencies offer as its services are limited to a few countries only, he said. Potential transactions with Libra will require users to reveal their identities. Further, he highlighted the fact that Libra works on a centralized network which again, opposes the ethos of cryptocurrencies.
Antonopoulos also claimed that Facebook’s Libra might not withstand global wars, like the ongoing trade war and currency wars between the USA and China. Antonopoulos concluded the segment by questioning Libra’s purpose in the cryptoverse, claiming that that Libra doesn’t meet any of the criteria required by cryptocurrencies; criteria such as being transparent, immutable, and borderless.