THE DANGERS

OF CRYPTO-CURRENCIES

Here are some questions that one is entitled to ask about cryptomoney:-

What happens to the Euros of a person who has bought a cryptomoney. -

Do you think that these Euros are carefully and carefully kept by the founders or better still destroyed as it should be the rule.

 (When the Euro was put into circulation the Francs, Marks and Liras were not destroyed).

- Don't we witness the doubling of the money supply by keeping the two currencies with all the risks of inflation that this entails -

How are these currencies from the purchase of cryptoskills managed or used -

Don't they simply fall into the hands of unscrupulous founders likely to use them for personal purposes.

- Does the platform for exchanging currencies in cryptomony that you are going to use really have an official, legal and sustainable existence?

- How are you going to keep your cryptomonnaie and the history of your transactions ("Ledger" type electronic wallet).

- What will be the price stability of this encryption in the future.

- In case of spitting and massive repurchase of currencies by the holders of cryptomoney, what exchange rate guarantees will you have.

- Will your platform be able to withstand the influx of requests and will it be able to ensure without delay all transactions.

REFLECTIONS

ON THE FACEBOOK LIBRA

The following are some of the financial questions that one might ask about the Libra, apart from data collection, which poses other problems:

Facebook is expected to launch its "Libra" encryption system in 2020 via its subsidiary Calibra, which was set up for this purpose.

Its aim is to facilitate financial transactions between individuals and to considerably reduce bank, exchange and transfer fees.

At the end of 2019 more than 27 international institutions such as VISA, Paypal, Ebay, UBER, Vodafone, Booking etc. were applying, with an entry fee of 10 million dollars, to join an association limited to 100 members, domiciled in Switzerland and responsible for managing the currencies resulting from the purchase of the Libras.

It would appear that Switzerland and some governments have some sensible reservations.

At the creation of the Euro, central banks exchanged local currencies such as the Franc, the Mark or the Lira for Euros.

Naturally, they destroyed these currencies that were no longer in use.

The money supply in circulation therefore remained constant during this operation and the risks of inflation were eliminated.

But today, what is the risk of happening with the Libra?

Facebook users and the 100 future partners of the association will buy Libras from Calibra in different currencies.

This basket of currencies is supposed to be a Swiss-domiciled reserve.

Calibra will therefore create money supply since it will not destroy the currencies resulting from its customers' purchases of Libras.

This will therefore have the same perverse effects as a banknote printing plate.

This raises the question of how this reserve will be used in the future.

Initially, it would seem to be used to guarantee the reverse conversion of the Libras into current currencies such as the Euro and the Dollar for those who request it.

Will the Libra be more secure than the currencies from which it is derived, one is entitled to doubt this today given the lack of information on this subject and the currencies used.

If the Libra is a worldwide success, which is not impossible given the 2.5 billion Facebook subscribers attracted by the reduction of their bank charges, it is likely that this reserve of hundreds of billions will seek to invest in a diversified manner under the guise of "increasing its security" given the fluctuations and guarantees offered by the reference currencies.

Calibra will thus find itself at the head of a huge war treasure that could disrupt the world economy.

Let's imagine that 1 billion users each hold €100. Calibra would then find itself at the head of €100 billion.

Wouldn't he be trying to buy back government bonds, shares in private or public companies, to finance foundations, NGOs and why not religions, political parties, even countries etc...?

By creating the Libra without neutralizing the currencies resulting from their conversion, Calibra will thus become a gigantic planetary banknote board in broad daylight and with the blessing of its users attracted by the savings made on their banking transactions thanks to the use of the Libra and its blockchain.

This "WORLD COMPANY" thus created will be no more powerful than any bank, current company and many states unable to invest such sums in their economy or in humanitarian or environmental causes.

What will happen to the world monetary, economic and banking system when the Libra has supplanted the existing currencies?

Clever, will be the one who will know how to hack Calibra when we know the current failures of reliability and security of Facebook.

Malignant, will be the one who will know how to exploit, via electronic trading, the variations of Libra's rates in the face of the fluctuations of the reference currencies.

Faced with the hypermediatization and the power of Facebook, states and financial and monetary institutions will know how to control the development of the Libra and avoid the implosion of the monetary system.

I invite you to reflect on the future dangers of these currencies and crypto-currencies if they are not controlled by states holding this regalian power..