Steve Forbes, The Chairman and Editor-in-Chief of Forbes Media, has asked Mark Zuckerberg to Use Gold to Back Libra and Call It the ‘Mark’ in an open letter published on June 25th 2019.
In the letter, Forbes strongly encouraged Facebook’s crypto initiative, emphasizing Libra’s potential to become one of the greatest inventions in the world, which eventually “could replace the U.S. dollar as the global currency.”
The letter reads;
Dear Mr. Zuckerberg:
Your company made big headlines when it announced it would be launching a cryptocurrency called the Libra in 2020. Not surprisingly, given the nature of the times, the project has been greeted with intense criticism and skepticism. Don’t lose heart. In one sense, the idea of a company creating its own kind of money is an old one. The airlines’ frequent-flier miles are really a form of money that customers can earn and use to buy trips and various other things. Credit card companies, hotels and numerous retailers have all sorts of loyalty programs in which people earn points that will let them buy all manner of goodies.
But if you play your cards right with the Libra, you could be to money and finance what Henry Ford was to automobiles. Your new currency could take its place alongside the inventions of coins and paper money many centuries ago. It could replace the U.S. dollar as the global currency.
In one crucial area you’re already light years ahead of virtually all other cryptocurrencies: You realize the fundamental importance of a currency that’s stable in value. Money measures value the way a scale measures weight or a clock measures time. Most cryptos–whose values fluctuate violently from one moment to the next–are great as speculative vehicles, but they’re useless as real money. No one in his right mind would write a contract longer than 24 hours in bitcoin. With cryptocurrencies, it’s steak one day and dog food the next. But if you can invent a truly stable cryptocurrency that can actually be used for day-to-day transactions and for longer-term contracts and investment vehicles, you’ll be a winner.
Here are crucial tips to turn the Libra into one of history’s truly seminal creations:
Make it as good as gold. Backing your new money—as you plan to do—with a basket of currencies won’t cut it. In today’s monetary system the values of currencies jump up and down, so you won’t get the stability you need.