“I’m not a big fan of what they’re doing there,” Cuban. “I think it’s a big mistake.”
The billionaire businessman thinks Libra could wind up doing damage on a global scale.
“I think globally and in countries where there isn’t a lot of rule of law, or a lot of government stability, or currency stability, then it could be dangerous.”
Cuban warns that without proper regulation, Facebook’s crypto asset could become a source of strife around the world. Specifically, Cuban wonders how countries will react to losing local control to a social media entity such as Facebook.
“There’s going to be some despot in some African country that gets really upset that they can’t control their currency anymore and that’s where the real problems start occurring.”
Mark Cuban has not been the only person warning against Facebook’s cryptocurrency project. President Donald Trump just referred to cryptocurrency as “not money” and also warned about the power that Facebook could wield with their own currency.
President Trump tweeted that Facebook’s Libra will have “little standing or dependability” and without regulation could be severely dangerous to the world’s economy.
It’s rare when both the left wing and right wing of American politics agree. But Democrats, as well as Republicans, have spoken out against Facebook and their digital asset endeavors.
The House Financial Services Committee, led by Democrat Maxine Waters, wrote a letter to Mark Zuckerberg that demands an “immediate moratorium on the implementation of Facebook’s proposed cryptocurrency and digital wallet.”
In the letter, The House Financial Services Committee argues that more time is needed to research the possible risks involved and the possible dangers that could come with the creation and use of Libra.
The chairman of the Federal Reserve, Jerome Powell also expressed that Libra will cause “serious concern” for regulators when he spoke in front of Congress this week.