The recent takedown of Facebook Libra by the United States Senate Committee on Banking, Housing, and Urban Affairs has been quite interesting.
Firstly, for such a powerful organ to come out in public and try to openly tear down an American Corporate initiative on blockchain technology says much about the current crop of politicians in power.
So much so that the Crypto World lost $20Billion in just a few hours!
Firstly, though we may neither like nor trust Mark Zuckerberg when it comes to our privacy and control, he may be unto something.
Secondly, the U.S Government which has been the pioneer of innovations for the past two centuries doesn’t seem to understand a few things about disruptive innovation which Mark does. Disruptive innovations in the 21st century move far faster than they did in the previous one.
Facebook’s wading into the crypto sphere based on collaboration (which by the way is a first for Mark). This shows that Facebook is willing to share this playground.
The U.S Government doesn’t understand a few things about blockchain technology; at least not yet. If you study the graph below by Michael Cox and Richard Alm in 2008, you’d realize that technology adoption rates are growing smaller.
If you study the graphs, you’d realize that over time, people are adopting new technologies faster than previously.
Mark Zuckerberg and other smart guys took advantage of this and made themselves rich!
The Senators realize this as well and hope to slow this by fighting what the people have been doing unconsciously for the past one hundred years!
And yet, they were elected to preserve the will of the American people! And these same people have been adopting technology faster and faster! Guess what, the Americans public leads and we all tend to follow!
It doesn’t sound like a pretty situation because Mark is just a businessman and the Government is getting IN the way of Business….
It is NOT a good sign.
Secondly, the U.S government is about to lose its premier status as the “go-to” guys for finance in the World.
Cryptocurrencies of all shapes and sizes are going to seize that space thus leveling the playing field for everyone else.
Going from the various back and forth statements occurring during the hearing it was quite obvious that the distinguished senators look at Cryptocurrencies as simply money; hence their fear.
In truth, cryptocurrencies are multi-purpose assets which have multiple uses depending on the technology deployed; something the Senators don’t get.
Thirdly, Libra is quickly becoming a standard of its own.
It’s just like the open handset alliance that created common standards for the emergence of the Google Android operating system for mobile phones. The kinds of partners on the Libra project indicates a more than a surface interest in the project. At least, that’s what Mark hopes to achieve.
In truth, he may achieve some but NOT all of his aims. The concept of decentralization will defeat his centralization mindset.
The Senators are right on ONE thing though: Mark DOES have way too much power and needs to be put in check. On the other issues at hand: They are wrong and won’t win.
Even if Facebook Libra Fails, other industry-led Cryptocurrency initiatives shall takeover. Libra wins! And it’s great for Cryptocurrencies!
What do you think? Who will win between Facebook Libra and the US Government? Please let us know in the comments below!