On June 25, the Chairman and Editor-in-Chief of Forbes Media, Steve Forbes published an open letter to Facebook’s famous founder, Mark Zuckerberg. In the letter, he advised him to back Facebook’s yet to be released cryptocurrency Libra with gold.
In the letter, Forbes powerfully buoyed up Facebook’s cryptocurrency proposal; putting spotlight on Libra’s prospective to turn out to be one of the best inventions in the world, which sooner or later might substitute the U.S. dollar as the international currency.
The major American publishing executive further argued in the letter that to become one of history’s truly seminal creations, Libra has to be backed by gold as a basic condition. He appeared to be opposing the existing plan of Facebook to back the cryptocurrency by a basket of fiat currencies.
It is to be noted that Forbes explained that gold would fit this purpose best in Libra’s objective to offer a truly stable digital currency. He writes:
“For a variety of reasons gold holds its intrinsic value better than anything else. It’s like a measuring rod. It no more restricts the money supply than the 12 inches in a foot restricts the size of a building you might wish to construct. All it means is that the Libra will have what no other currency has today: a fixed value.”https://www.forbes.com/sites/steveforbes/2019/06/25/open-letter-to-mark-zuckerberg/
As per Forbes, Libra’s “fixture” will be the real thing that will make it the most pleasing medium of swap around the world. This is because, it can be used in day-to-day transactions and can also be used in long-term investing.
Finishing his letter, Forbes in the end insisted Zuckerberg to mull over shifting Libra’s name to the “Mark,” citing the dire luck history of the term “Libra”. Exclusively, he reminded that the “Libra” was used to refer to a measure of the weight from the shattered Roman Empire. Conversely, the Mark of the German Empire is “up for grabs,” comments Forbes.
As per a report by The New Yorker, major American banking institutions including JPMorgan Chase, Goldman Sachs, and Fidelity have repudiated to join Libra association until now.