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Steve Forbes, the Editor-in-Chief of Forbes Media, just wrote an open letter to Facebook’s Mark Zuckerberg, suggesting that Facebook should back Libra with Gold.
Facebook’s cryptocurrency Libra has been getting a lot of attention from global media and news outlets because of the potential it has. In his letter, Forbes commends Facebook for inventing Libra and hints that Libra could even replace the U.S. dollar as the global currency. He states:
“Your new currency could take its place alongside the inventions of coins and paper money many centuries ago. It could replace the U.S. dollar as the global currency.”
Forbes also takes it upon himself to correct Facebook on its decision to back Libra with a basket of currencies, which is intended by the social media giant to stabilize Libra’s value (and thus making it a stablecoin). “Backing your new money—as you plan to do—with a basket of currencies won’t cut it. In today’s monetary system the values of currencies jump up and down, so you won’t get the stability you need,” Forbes told Zuckerberg. Instead, he recommends that Facebook should make Libra “as good as gold”. He asserts:
“For a variety of reasons gold holds its intrinsic value better than anything else. It’s like a measuring rod. It no more restricts the money supply than the 12 inches in a foot restricts the size of a building you might wish to construct. All it means is that the Libra will have what no other currency has today: a fixed value.”
Forbes also talks about how Libra’s stable price could make it “the most desirable medium of exchange around the globe.” After all, Libra already has all the pros of a digital currency with the backing of a social network with billions of users. The only downfall it has is the same as any other cryptocurrency – a volatile price. If Facebook somehow managed to make it stable, they would have in their hands the holy grail of cryptocurrencies.
Cryptocurrency Name Change from ‘Libra’ to ‘Mark’
In the end, Forbes urges Zuckerberg to change the cryptocurrency’s name from Libra to Mark. He reminded Zuckerberg of the bad luck that surrounds the name ‘Libra’. It was a measure of weight in the now destroyed Roman empire, whereas the ‘Mark’ of the German Empire, which was abandoned for the euro 20 years ago and now is “up for grabs,” notes Forbes.
Zuckerberg might take a while to respond to Forbes’ letter though as Facebook is busy dealing with the backlash from the crypto community as well as many governments and regulators. Russia, Germany, France, US, and several other countries have come out either entirely against or for a highly regulated version of Libra.