FACEBOOK CURRENCY – A MONETARY UTOPIA OR A POSSIBLE PROJECT IN THE NEAR FUTURE?

Dorel Dumitru Chiritescu
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Dorel Dumitru Chiritescu: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU

Annals - Economy Series, 2020, vol. 4, 149-154

Abstract: Recently, Facebook Company announced its intention to put into circulation and manage its own currency. Its name would be Libra and it would be managed by a financial technology company with the headquarters in Geneva, called the Libra Association. The stated objectives of this currency would be to facilitate the international electronic commerce and to ensure an efficient platform for the global payments. As expected, the reactions of government and central bank representatives appeared immediately. The president of the US central bank, Jerome Powell, has already stated that the project of this virtual currency cannot go on until the “serious concerns” related to its operation are removed. These would be: money laundering opportunities; consumers' protection; stability of the global monetary system; but also “potential systemic effects”. Bruno Le Maire, the French economy minister, also explains more clearly his reservations about the existence and operation of such an international currency. It is about the fact that a private company cannot and does not have the right to create a currency that would compete with national currencies, currencies that are an attribute of the sovereignty of states. As it can be seen, the representatives of the states are against the Libra currency. Why is this happening? Why do these people not agree with such a currency? Is it a fad of theirs, or simply are the concerns more serious, meaning they have a much more serious background? These are the questions we intend to answer in the following.

Keywords: currency; facebook currency; monetary policy; the value of money; paper currency (search for similar items in EconPapers)
Date: 2020
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