Forbes Media Chairman and Editor-in-Chief Steve Forbes wrote an open letter to Mark Zuckerberg on June 25, recommending gold to support Facebook's cryptocurrency Libra .
(Forbes Media Chairman and Editor-in-Chief Steve Forbes)
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In this letter, Forbes expressed strong support for Facebook's cryptocurrency program, emphasizing Libra's potential to become one of the world's greatest inventions, and ultimately "may replace the dollar as a global currency."
Forbes said in the letter, at the same time, Libra must be supported by gold if it wants to be "one of the most groundbreaking works in history." In the letter, Forbes opposed Facebook's current plan to support Libra with a basket of currencies.
The following is the full text of the open letter published by Forbes:
Dear Mr. Zuckerberg:
When your company announced that it would launch a cryptocurrency called Libra in 2020, it immediately became headline news. Given the characteristics of this era, this project has been strongly criticized and questioned, which is not surprising. Do not be discouraged. In a sense, the idea that a company creates its own currency is outdated. The airline's frequent flyer miles are actually a currency, and customers can accumulate miles and use it to purchase itineraries and a variety of other things. Credit card companies, hotels and many retailers have a variety of loyalty programs where people can purchase a wide variety of goods through points.
But if you manage Libra properly, your contribution to money and finance will be the same as Henry Ford's contribution to the car. Your new currency may replace coins and banknotes created centuries ago and may replace the dollar as a global currency.
In an important area, you have been ahead of almost every other cryptocurrency for many light years: you realize the importance of maintaining a stable monetary value. Money measures value, just like the balance of day weight or clock measurement time. The value of most cryptocurrencies tends to fluctuate frequently, and they are great as speculative tools, but they are useless as real money. Anyone with a normal mind will not sign a contract for more than 24 hours with Bitcoin. With cryptocurrency, today is a steak, and you can only buy dog food tomorrow. But if you can invent a truly stable cryptocurrency that can be used for everyday trading, long-term contracts and investment tools, you will be the winner.
Here are the keys to making Libra the most groundbreaking work in history:
Make it as reliable as gold. As you have planned, it is not enough to support your currency with a basket of currencies. In today's monetary system, the value of money is volatile, so you won't get the stability you expect.
The Netherlands, a country that can become a global economic power, is followed by the United Kingdom (Isaac Newton, the head of the Royal Mint, has kept the fixed exchange rate of pounds and gold for more than two centuries), then the United States. (Thanks to Alexander Hamilton) – the currencies of these countries are linked to gold.
For a variety of reasons, gold is more intrinsically valuable than anything else. It is like a measuring rod. This means that Libra will have something that is not available in other currencies today: a fixed value. And this fixed value will gradually make it the most ideal trading medium in the world. People want a reliable currency.
Your advisers, like most economists today, will strongly oppose this yellow metal, because ignorance and countless rumors and superstitions put a burden on them. This generally held skepticism is actually an advantage because it will prevent funded imitators.
To accurately assess how the gold standard worked in the past, read the book of historian and economist Nathan Lewis. You can also check out my co-authored book "Money" or the documentary "In Money We Trust?", which I recently helped TV stations produce.
By encouraging long-term investment, Libra will be an incredibly powerful tool. Without capital to function effectively, we will stand still. That's why you should ignore the voices of politicians, they will only delay Libra's progress. If every major breakthrough relies on political permission, then Ma may still be our main means of transportation. You should expect Libra to attract a large number of users as quickly as Uber and Lyft, as this will prevent politicians from ruining your invention.
By the way, you can also consider giving Libra a name. The word Libra is a measure of weight in the Roman Empire, and we know its final outcome. Don't be shy, just call it "Mark". Since the emergence of the euro since World War II, Germany has given up the mark that has been used and switched to the euro, so the name can be used.
Mark based on the gold standard will be a revolutionary move in the history of money. It will beat Bitcoin and will receive enthusiastic “likes” from billions of businesses and individuals.