Barry Eichengreen, Professor of Economics at the University of California, Berkeley, and a former senior policy adviser at the International Monetary Fund, believes that Facebook’s Libra will never be launched as it faces too much resistance from the government.
The UC Berkely professor claims that Libra coins are either too expensive or too fragile, to become the primary monetary form in the financial world. He highlighted that the planned stablecoin faces too many “insoluble” problems, and too much resistance from governments to ever see the day of the light.
Eichengreen noted that the stablecoin sector is largely ignorant of monetary economics and history. In his opinion, stablecoins are fragile and prone to attack and collapse if they are only partially backed or collateralized with actual dollars or dollar bank balance.
The Libra Association is working hard to get Libra off the ground this year, and for that to happen, the association has made several changes to the stablecoin project. To avoid Libra discrediting, Facebook has tried to distance from the crypto project over the past few months as they have a bad track record of handling users’ privacy.