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Columbia University professor: Libra project must be stopped

Lately, Facebook has suffered a lot of criticism because of the release of Libra. The professors of Columbia University did not stay aside. Brighter than all of them put Katharina Pistor.

Columbia University professor: Libra project must be stopped

She is convinced that Zuckerberg and his team must stop the entire project.

“Zuckerberg seems to understand that technological innovation alone will not ensure the success of Libra. It also needs governments to commit themselves to enforce the network of contractual relationships underlying the currency and to approve the use of their own currencies as collateral. If Libra is launched, central banks will be required to provide liquidity. ”

The professor claims that the authorities are not yet aware of how much Libra can inflict enormous damage.

“The idea of a private payment system that does not face obstacles, and which has 2.6 billion active users, may seem attractive. But every banker and monetary policy developer knows that payment systems require a level of liquidity support that no private organization can provide, ”writes Pistor.

Pistor also said that Facebook will not be able to ensure the stability of its coins in the future.

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