Chairman and Editor-in-Chief of Forbes Media, Steve Forbes, in an open letter to Mark Zuckerberg, Facebook’s founder, to change the name of Facebook Libra stablecoin and also back it with gold.
Forbes encouraged Facebook’s crypto initiative saying that Facebook Libra has the potential to become one of the greatest inventions in the world, which could eventually replace the US dollar as the global currency.
He added that to become one of history’s truly seminal creations, as a condition, Libra has to be backed by gold. In the letter, he opposed the current facebook’s plan to back the coin with a basket of currencies. The Editor-in-Chief explained that gold would perfectly fit the function in Libra’s mission to provide a stable currency.
“For a variety of reasons, gold holds its intrinsic value better than anything else. It’s like a measuring rod. It no more restricts the money supply than the 12 inches in a foot restricts the size of a building you might wish to construct. All it means is that the Libra will have what no other currency has today: a fixed value.”
As per Forbes, Libra being a stable coin makes it the most desirable medium of exchange in the world since it can be used in the long term as well as in day to day transactions.
He also warns Zuckerberg in his message that Libra’s consultants will likely be criticizing the gold-backing idea, but it will be an advantage as it stops well–capitalized imitators.
Concluding his letter to Zuckerberg, he urged him to consider changing the name to Mark, referencing to the bad luck history if the ‘Libra’ term. He specifically reminded him that the ‘Libra’ was used to refer to a measure of weight from the destroyed Roman Empire. He also noted that, the Mark of the German Empire, which was neglected 20 years ago and now is up for grabs.
Do you think Steve Forbes argument of Facebook Libra to be changed to ‘Mark’ is a good idea?
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