American economist, public policy analyst Joseph Stiglitz thinks that only a fool could risk money by trusting Facebook’s crypto.
Despite the fact that many critics of the traditional financial system consider fiat currencies to be unstable, Stiglitz notes that many national currencies have maintained “surprising stability” for a long time.
Stiglitz believes that the banking sector has achieved a significant degree of financial transparency. Thus, it has become “much more difficult to use the services of banks for money laundering and other illegality.”
The economist, meanwhile, acknowledges some of the problems of the traditional financial system. According to Joseph Stiglitz, the main problem of the American banking sector is insufficient competition, and the efforts of state regulators can solve it.
Stiglitz is convinced that Libra is intended to become such a medium of exchange that will allow to bypass the rules of the fight against money laundering:
“There are two obvious answers to the question of the business model: one is that people who engage in nefarious activities (possibly including America’s current president) are willing to pay a pretty penny to have their nefarious activities – corruption, tax avoidance, drug dealing, or terrorism – go undetected. But, having made so much progress in impeding the use of the financial system to facilitate crime, why would anyone – let alone the government or financial regulators – condone such a tool simply because it bears the label “tech”? If this is Libra’s business model, governments should shut it down immediately,” he said.