Hot on the heels of a massive privacy scandal, Facebook announced Libra, and naturally, it sent regulators and media people in a tizzy. But were the potential privacy and money laundering issues they raved about the real threat? BC Group CEO Hugh Madden says no.
Speaking to a packed crowd at Block O2O: The First Global Crypto – Libra, Madden detailed why money laundering and privacy are pretty much non-issues with Facebook’s upcoming coin, eventually pointing out the real problem: financial stability.
“You got this thing which has the ability to draw in enormous amounts of capital, and it’s going to turn around and invest that capital in government securities,” he said, adding “this thing grows large, in some cases, large enough to impact interest rates … it’s going to have great and unexpected consequences.”