Published in El Pais, October 22nd 2019.
Facebook just can’t catch a break. Their stablecoin was supposed to legitimize cryptocurrency by not only putting a big name behind it but also have the backing of major financial companies and legislators around the world. It got off to a good start with companies like Visa and MasterCard getting behind the project but unfortunately it never got the support of governments as many have accused Facebook as using the coin to avoid laws. Lately Facebook and many other companies looking to create their own stablecoin have been dealt a huge blow, a study by the G7 has concluded that a coin used worldwide would undermine the worlds monetary system as well as make criminal activity like money laundering easier. Finally they conclude that no coin should be legal until the risks are addressed.
Are these concerns without warrant? Yes and no. It is understandable why governments worry about cryptocurrencies as they have largely been used for crime in the past but what makes stablecoins created by major companies different from others like Bitcoin is that they have stated on many occasions that they want to work with the regulators to address their concerns so that once it is launched they would have little concerns.
I understand governments are scared as Bitcoin was created to cut out banks and governments but this is different. Blockchain technology can change the world and we are only now just tapping its potential. If lawmakers welcome cryptocurrencies with open arms, both traditional and stablecoins, they can put everyone’s mind at ease while the world benefits from everything it has to offer.