Facebook’s digital currency is not the solution: Positive Money comment

Responding to the announcement of Libra, Facebook’s plans for a digital currency in partnership with companies including Visa and Mastercard, David Clarke, head of policy at Positive Money, said:

“Facebook has rightly identified the potential for digital currencies to reinvent money and transform the global economy, so people can live better lives. However, a digital currency controlled by tech cartels such as Facebook, Visa and Mastercard, is not the solution.

“Our money is increasingly in the hands of a small number of banks and payment companies, and we should avoid ceding further control to unaccountable corporate interests. Facebook’s plans pose alarming implications for privacy and power in the economy, and governments must respond by providing a central bank digital currency as a public alternative.

“If regulators come under pressure to give the likes of Facebook access to central bank reserves, we should ask why this privilege shouldn’t be extended to ordinary citizens as well, through a central bank digital currency. This would offer an opportunity to truly democratise our money system and take power away from extractive middlemen like banks and now tech companies.

“It is publicly-issued digital currencies, not Libra, that will allow people to take back control of their money and have a greater stake in the future.”

About Positive Money 

Positive Money campaigns for a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters.

www.positivemoney.org