Facebook’s Libra: Why Does US Government Fear Price Stable Cryptocurrency?

17 Pages Posted: 8 Nov 2019

See all articles by John Taskinsoy

John Taskinsoy

Universiti Malaysia Sarawak (UNIMAS)

Date Written: November 7, 2019


US President Donald J. Trump says he is not “a fan of Bitcoin and other cryptocurrencies”, and he does not have to be, but using this premature reason (like a bully) to rage a war against Bitcoin and Libra is ludicrous. Will Trump (or the United States government) try to destroy everything that he dislikes or is not a fan of? Satoshi Nakamoto (pseudonym) designed Bitcoin as public good in mind, but the US dollar serves totally the opposite as it has been increasingly used as a weapon of mass economic destruction. The real issue is, President Trump feels agitated and concerned because Bitcoin and Libra create an undesired situation of diminishing US power. The anonymity aspect of Bitcoin limits Trump’s (the US government’s) role as the global policeman (i.e. succeeded the UK in 1945). Just to curb Bitcoin’s popularity, politicians produce lies, make short-sighted assertions, and publicly share ill-advised thoughts; regardless, Bitcoin mania is nothing like the tulip mania or the dot.com mania, it is with us now and it will continue to forge ahead unabated in spite of doubters, pessimists, doomsayers, skeptics, and disbelievers. At the backdrop of US-China trade war and the regulatory backlash to force Facebook to halt its Libra project, one is compelled to wonder till when the United States will exploit the world’s scarce resources and how many more lives will be perished for petrodollar so that the U.S. can continue enjoying the “exorbitant privilege” of dollar hegemony.

Keywords: Libra; Facebook; US Dollar; Cryptocurrency; Bitcoin; Stablecoin

JEL Classification: O31, G12, E42, C40

Suggested Citation

Taskinsoy, John, Facebook’s Libra: Why Does US Government Fear Price Stable Cryptocurrency? (November 7, 2019). Available at SSRN: https://ssrn.com/abstract=3482441 or http://dx.doi.org/10.2139/ssrn.3482441

John Taskinsoy (Contact Author)

Universiti Malaysia Sarawak (UNIMAS) ( email )

94300 Kota Samarahan
Sarawak, Sarawak 94300

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