Peter Morici: Facebook’s Libra threatens dollar’s international status

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Facebook’s Libra is attracting scrutiny from Congress, concerned about money laundering and other issues associated with cryptocurrencies. Properly managed, however, Libra poses a bigger challenge — it could replace the dollar as the currency of choice for legitimate international transactions.

Libra’s White Paper presents an impressive list of corporate backers but it leaves out many details about how its infrastructure would work and be safe against criminals and rogue regimes, like the drug cartels and North Korea, which use bitcoin to circumvent economic sanctions.

Facebook FB, +1.81% CEO Mark Zuckerberg’s mammoth credibility problems don’t help. His insular personality and track record for abusing personal information caused the announcement of Libra to instigate immediate plans for congressional investigations and hearings.

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