Ben Mezrich, the author of the “Bitcoin Billionaires” book, has argued that Amazon would be better than Facebook to launch the Libra cryptocurrency, as it’s more trusted than the social media giant.
Speaking on CNBC’s “Squawk Box,” Mezrich argued the project is “all about trust” as there “can’t be a new currency without people trusting it if you’re going to sit in the middle of it, and people don’t trust Facebook.”
The author, who also wrote “Accidental Billionaires,” a book that served as the bases to the movie “The Social Network,” argued it would make more sense for Amazon to be leading its own cryptocurrency project. He was quoted as saying:
I think that Amazon could pull this off because for whatever reason we all trust Amazon. We put our credit cards in there everyday.
Facebook has announced last month that it’s developing its own cryptocurrency, and that’ll it be launched next year. The cryptocurrency, Libra, is set to be backed by a basket of fiat currencies and U.S. Treasury securities.
The cryptocurrency itself will be managed by the Libra Association, a nonprofit based in Switzerland with various large companies represented in it. As covered, U.S. Congressman Warren Davidson recently implied the Libra is a shitcoin because it has a central entity behind it, unlike decentralized cryptos like bitcoin.
This month David Marcus, the head of Facebook’s team working on Libra, testified before Congress for two days, and received requests to halt the project until the government can look into it and regulate it. Marcus had to answer various tough questions during the hearings, including whether he would accept his salary in Libra.
Speaking to CNBC Mezrich noted he believes Amazon would be subject to less scrutiny than Facebook. Per his words regulators would be on top of Amazon’s plans, but “it wouldn’t be like this.”
The author added that Libra won’t be a true cryptocurrency because it’ll involve financial mediators. It could, he said, serve as an “on ramp” to bitcoin, helping those unfamiliar with the cryptocurrency ecosystem look into the flagship cryptocurrency.