Crypto’s most prominent skeptic and respected economist Nouriel Roubini has claimed that Facebook’s GlobalCoin is not a cryptocurrency and has very little to do with the blockchain. The claims were made earlier today in a conversation with a leading crypto media outlet.
Roubini, also known as “Dr. Doom” is renown for his prediction of the 2007-2008 financial crash that may have facilitated the birth of cryptocurrencies.
“It has nothing to do with blockchain. Fully private, controlled, centralized, verified, and authorized by a small number of permissioned nodes. So what is crypto or blockchain about it? None.”
Recently, we learned that Facebook had signed up more than a dozen backers for its “crypto coin,” a stablecoin that will be backed by a basket of fiat currencies. The backers include the likes of Visa, Mastercard, Uber, and PayPal. Each backer is expected to invest around $10 million in the project as part of a governing consortium for the currency.
In the conversation, Roubini acknowledged that many details of the project are still unknown, but we will find out tomorrow when the white paper is published. He went on to suggest that its highly unlikely that GlobalCoin will use standard blockchain technologies that involve proof of work and proof of stake even wondering why they would.
The economist also denied sharing any ground with the crypto community given that many within it have been quick to criticize anyone who has called the social media giant’s token a cryptocurrency.
Also, he noted that in the past he has gone on record to state “enterprise DLT [distributed ledger technology] is blockchain in name only … so some crypto faithful may agree on that.”
“But in my opinion, public decentralized, trustless blockchain is a pipe dream … so we disagree on 99% of [the] substance.”
Also, recently we learned that Facebook is facing significant problems with its crypto project as many within the blockchain industry are reluctant to work on a project that doesn’t appear to have the hallmarks of a real cryptocurrency.
You may also be interested in:
- Facebook’s Globalcoin vs Bitcoin; why Globalcoin is an advantage for Bitcoin
- Facebook Globalcoin currency to be monitored by a third party