A former head of China’s central bank has come out to say that Facebook’s Libra would be better served under the control of the International Monetary Fund (IMF). Facebook’s proposed digital payment platform continues to draw criticism from financial regulators around the world.
Libra Would Work Better Under IMF Custody
Zhou Xiaochuan, former head of the People’s Bank of China (PBoC) says Libra has little chance of succeeding outside the control of mainstream financial institutions. Commenting on the matter, Zhou remarked:
People will question the motive of Libra as it’s initiated by a private company, it works better if it’s in IMF’s custody.
I watched the entire video and his comments is VERY to the point and super wise TBH.
Central bankers are not dumb when it comes to currency business
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) November 8, 2019
Zhou, like many prominent actors within the Chinese government, has also come out against Facebook’s proposed digital payments project. Back in July, the former chairman of the PBoC declared that Libra posed significant risks to payment systems and national currencies.
For Zhou, Libra being under the control of private companies creates the possibility of these private interests dictating monetary policies on a global level. However, there is an argument to be made that replacing the Libra Association with the IMF would likely amount to the same centralized credit market control.
Furthermore, an IMF-controlled Libra project could see the same weaponizing of the system by sovereign powers as is common with the current financial infrastructure. It is this absence of centralized oversight that some commentators like Twitter’s Jack Dorsey say gives bitcoin (BTC) the upper hand in the grand scheme of things.