Why would a tech company founded in 2004 want to become the world's biggest bank?
Well, let's look at some hard numbers:
Despite falling interest rates since 1970, global banks have still been able to grow their net revenues. The banking model is still profitable, despite people's loss of confidence. The sector captures about 700-800 USD per person worldwide.
Facebook only makes about 7,05 bucks per account. And to make that little amount they sell all your private data to the highest bidder.
And if your business model bankrupts your banking adventure, the people's bank will bail you out.
How could Facebook become the world's biggest bank?
With 2.41 billion monthly active users, Facebook has a big following and can use that to its advantage. Since the new form of money is changing from paper and metal to digital currencies, it does make sense that Facebook wants to go into banking. It could boost its net revenues with 100x.
Of all its active users, about 2.2 billion are mobile users, and as by magic, it turns out that digital money is used for payments using mobile apps. So, again, Facebook has some huge advantages.
If allowed by Congress, they would develop their financial project and become a bank, if they apply to financial regulations. Since they don't respect legal privacy regulations, I expect nothing less than a disaster.
Why would it be bad news for the users?
If we take a look at Facebook's past track record, we can fairly warn everyone that their financial privacy will no longer exist, as Facebook's business model is to lure users in, with algorithms that stimulate their dopamine production, to then sell their private data to the highest bidder.
This will make your privacy non-excistent as they will be able to track your everyday movement, the likes of the Chinese social credit model. You can say goodbye to financial freedom and freedom of speech, as they can turn your access to their system off, if you don't remove that negative quote you posted 10 years ago on some outlet.
It will be an absolute disaster and destroy the new world order that made the USD the global reserve currency.
And Congress knows it.
If there are people who believe that Libra can compete with the upcoming launch of the Chinese digital yuan, they are misinformed, to say the least. Whatever the new monetary standards will look like, they can't be fiat, and Libra is fully fiat. It is a centralized digital currency backed by fiat currencies like the USD, the EURO and other currencies that don't store any value and are in fact destroying middle-class wealth.
Facebook has no gold reserves to back their Libra and despite what the name might lead you to believe it has nothing to do with freedom, it's quite the opposite.
Meanwhile, commentators continue to assert that China’s digital currency plans are part of efforts to prevent the widespread adoption of private virtual currencies like Facebook’s Libra. Several central banks are also making efforts to launch their own state-issued digital currencies.
Read more details in this article: https://www.publish0x.com/bitcoingoldstandard2/2020-why-facebooks-libra-shitcoin-or-shittoken-xrwojk