Facebook and its friends-companies determined that the planet wants another cryptocurrency, and that launching a brand new virtual coin is the best way to use the tremendous opportunities at their disposal. Such plans suggest that something is wrong with the twenty-first century American capitalist economy.
To some extent, this is a curious time to launch another currency. Within the past, complaints concerning traditional currencies were primarily associated with their volatility, and quick and unsure inflationary fluctuations made them a poor store of value. At the same time, the dollar, the euro, the yen and the yuan showed superb stability. Today, on the contrary, deflation, and not inflation, is worrisome.
The basis of every currency is confidence and trust that hard-earned dollars invested in it’ll be paid on demand. The private banking sector has long shown its insecurity in this regard, and that is why new rules are required to manage financial services.
However, Facebook won this mistrust in just a couple of years. Over and over, Facebook executives, selecting between money and fulfilling their guarantees, prefer money. And nothing can be related to money over the creation of a brand new currency. And today, nobody trusts Facebook for their financial well-being.