During the last podcast of Let’s Talk Bitcoin, Andreas Antonopoulos talked about the Libra project and a cold war going on between various currencies around the world.
Antonopoulos commented on Libra saying that in terms of technology the project is going great, not least because the people behind it are knowledgeable about what they are doing, and about the blockchain and crypto world.
“They cherrypicked some of the best features of the best cryptocurrencies the state of the art tech that existed out there and they advanced on it a bit”.
Furthermore, the Bitcoin influencer added that, given Facebook’s popularity, many were intrigued by the project and that this led a lot of people to pay attention to these assets and become aware of the ideals of these new technologies and their decentralized nature.
In particular, he pointed out that Facebook, having access to the data of more than 2 billion users about their preferences and behaviour patterns, investigated how to meet their needs accordingly, resulting in the launch of Libra.
It is, therefore, reasonable to imagine that central banks have begun to wonder whether they will be hit hard by this initiative in any way.
Moreover, Libra will be backed by a basket of fiat currencies used by consumers in the same countries where governments ask them to lend them their money, or try to limit their activity, and this has been described by Antonopoulos as “very serious stuff”.
In other words, according to Antonopoulos the impact of Libra will go far beyond the crypto world, and will even affect traditional fiat currencies.
In this regard I said:
“We’ve now entered the era of cold currency wars. The world is about to have an iron curtain drop in currencies like we’ve never seen before. We’re going to see a fundamental split between East and West in the evolution of state-based currencies, corporate-based currencies, and open cryptocurrencies”.
Not only Libra and decentralized cryptocurrencies will take part in this cold war, but also fiat currencies themselves, in a sort of great global competition in which currencies will probably start to rival each other even in states where only one of them will continue to be legal tender, as already theorized in 1976 by Nobel prize winner Friedrich A. von Hayek in his famous book “The Denationalisation of Currency”.