By CCN Markets: Avowed Bitcoin critic Nouriel ‘Dr. Doom’ Roubini has found another target – Facebook’s upcoming cryptocurrency Libra, on the day of its announcement. According to the New York University economics professor, Libra is ‘blockchain in name only’.
Roubini: Libra is just another profit driver for Facebook
Further, Roubini argued that Facebook’s cryptocurrency was only designed to grow the social media giant’s profits. Per Roubini, Libra is a ‘monopoly scam’ given that Facebook boasts of billions of users spread across the world.
And in a separate tweet, Dr. Doom also warned of Facebook’s ‘ridiculous chutzpah’ designs. Per Roubini, Facebook intends to use Libra to become the central bank of the world.
Prior to dubbing Libra a monopoly scam, Roubini had started his tirade against Facebook’s cryptocurrency warning of its risks. By virtue of the fact that Libra will be linked to a basket of currencies, Dr. Doom cautioned that it will carry a ‘significant currency risk’ for users based in countries with relatively stable currencies.
According to Roubini, potential users of Libra from the U.S. or the EU might be turned off by a cryptocurrency that’s also linked to relatively unstable currencies from emerging markets for instance.
Libra will be Facebook’s next cash cow
Roubini also predicted that Libra will generate massive revenues for the social media giant. Specifically, Roubini claimed Facebook will earn interest on user balances by investing them in treasury bills. But in Roubini’s opinion users that they should not expect to earn any interest on their balances:
Facebook Coin will make a fortune for FB & its investors by earning interest on “float”,