Libra Coin reviews: Shocking Libra coin review from the expert

An important Libra coin comment came from Barry Eichengreen, Professor at the University of California, Berkeley. According to the professor, Libra will face many problems.

Libra coin comment from the professor

By 2019, Facebook’s Libra cryptocurrency named. Due to the global uncertainties caused by the Corona Pandemic in 2020, the Libra project cannot take clear and concrete steps.. Professor Barry Eichengreen, on the other hand, makes a very different point and if Libra starts to take concrete steps again, it will encounter problems that it cannot overcome. >He claimed that Libra would not see the light of day.

Eichengreen also made important statements about the stable coin concept.. According to Eichengreen, stablecoin entrepreneurs know a lot about blockchain technology.. However, their forecasts on monetary policy are weak.. Stable coins that are fully or partially pegged to the dollar and collateralized are quite expensive to scale. According to Eichengreen, the fact that stable coins face an intense selling pressure, that is, liquidity pressure, can lead stable coins to bankruptcy.

We can compare the issue to the bankruptcy of banks with weak balance sheets.. When a rumor among their customers that the bank will go bankrupt, depositors rush into the bank to withdraw their money.. Under normal circumstances, the bank that can meet the cash demands of its customers, in case of panic, the liquid assets in its hands are not enough to meet the demand of its customers.. In this case, the bank either has to borrow at high interest rates or has to declare bankruptcy.. Eichengreen argues that stable coins may face similar problems.

Eichengreen emphasizes again that they will not allow a crypto currency pegged to their own currency to a private company that will affect the monetary policies of countries on the subject of Libra.

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