Facebook’s future “Libra” draws a lot of attention. On this matter, we hear a lot of things – true and false. Even the French Minister of Economy said: “Money created by private entities could challenge the Currencies of the States”. But nowadays, no State creates a dime of money. Private entities, Central Banks and Commercial Banks, create all the money that currently exists.
Not only a Currency…
Very few have noted that Libra is not only a Currency. Under the hood, Facebook also wants to manage identities. Their aim to solve the “problem” of anonymity on the Internet. In their whitepaper, they state:
An additional goal of the association is to develop and promote an open identity standard. We believe that decentralized and portable digital identity is a prerequisite to financial inclusion and competition.
Let’s read between the lines. The term “decentralized” here means “servers spread across the different members of the association”. Thus, this model is fully centralized. In reality, only members of the association can manage those servers and control them. Thus, they present us a “centralized” model and stick on it a “decentralized” label. Keep your eyes open.
It already exists!…
However, I really don’t get why some are hypnotized by this “novelty”. Actually, a system which offers the same functionalities already exists. Besides, it is a Free Software which obviously depends on no private entity: Duniter.
This software can manage a fully decentralized currency. In addition, monetary units are created only as the counterpart of a human living in the economy. Therefore, it doesn’t depend on the “goodwill” of an elite who would decide when and how to create it.
Above all, Identity Management in this software is also totally decentralized. No company, no group, no association, can control it. It is kept alive by human beings, sovereign individuals, who certify each other directly in a peer-to-peer manner, with no external intervention. The icing on the cake is that those individuals control the underlying blockchain that stores the currency.
… and it is already running!
Besides, Duniter is not a “whitepaper” of “something that may happen in the future”. A Libre Currency already exists and runs since March 2017. It is called Ğ1. As of today, more than 2100 people (and growing fast!) support it in French-speaking countries (France, Belgium, Switzerland…). Besides, anyone can create other Libre Currencies all around the world, the software is available!
So, are we going to stay in our sofa and let Facebook take over the world? Or are we going to get a hold of our own destiny?
The decision is ours.
To get a better understanding of money, and especially Libre Money, I have published a book, “Money: What You Don’t Know”: