A recent letter from the US House of Representatives to social media giant Facebook triggered a frenzied guess by cryptocurrency users. The impact of this letter and the recent response from Calibra CEO David Marcus will be widely discussed not only in the United States but also globally. House Speaker Maxine Waters and colleagues not only aimed at Facebook's Libra this week, but also aimed at the Swiss banking business of the Libra Association. Some people say that Facebook will kill the dollar. Others say that Libra will fail. Still others doubt the higher-level geopolitical engineering behind the scenes. In any case, the stakes are huge, and Switzerland is looking for something that always creates freedom: decentralization.
- Interview with Vitalik, see him talk about Ethereum 3.0, Libra, central bank digital currency, zero-knowledge proof
- French Finance Minister: France will prevent Libra from doing business in Europe
- "Dark net" black trading eco exposure: buying and selling personal information, drugs, using bitcoin transactions, multiple large cases were investigated
- Viewpoint | The cryptocurrency industry has reached a watershed, IXO to the left, mature public chain to the right
- Winners such as Tencent, Fidelity and Lotte, Everledger finally won $20 million in Series A financing
- Popular Science | Data Privacy Protection Mechanism + Blockchain Application Scenarios
"If you fail to stop Libra's implementation… risking a new Swiss financial system, the system is too big to fail."
The US government has sent a letter to social media giant Facebook asking it to suspend its upcoming cryptocurrencies and wallets, Libra and Calibra. July 2, 2019, the House Financial Services Committee to Mark
Letters from Zuckerberg, Sheryl Sandberg (Chief Operating Officer) and David Marcus (Calibra CEO):
“These products may be applicable to the new global financial system, which is based in Switzerland and is designed to compete with US monetary policy and the US dollar. This has led to serious privacy, trade, national security and currency for the wider global economy. Policy issues."
It seems that this is related to the economic interests of the US government, especially from the competition of social media companies in Switzerland. If the whole thing looks a bit strange, don't worry, you are not alone. Trump is Kim Jong Un's best friend, Iran is mining bitcoin in the mosque, and quantum physicists tell us that this is completely analog. But, whether or not, some extraordinary things are definitely going on.
Who are the Libra Association?
With the addition of Visa, MasterCard, Paypal, Uber, Lyft, Spotify and 21 other companies, the Libra Association is no longer a small bean. The institutions involved are a multi-billion dollar business alliance. This seemingly panicked tone from Congress shows some problems.
The huge entities in the financial world do communicate with each other. Companies such as Visa, Mastercard and Paypal are very focused on centralization, overseeing banking and political lobbying. It is part of the game for any major business in the field. But after all, things may not be so rough. The ominous House of Representatives warned that a distracting element of chaos has quietly entered the system.
Switzerland: The threat to global financial security?
Switzerland can be said to be the country that has contributed the most to global financial security in recent centuries. In a world of state-based violence and coercion-based economies, the Swiss government is also included.
The Libra Association is headquartered in Geneva, and one of the most interesting aspects of Congress's creepy message is its focus on Switzerland. Focus on another specific country as a new enemy of the dollar. Libra is a potential threat to world security and “designed to compete with US monetary policy and the dollar.” This is a threat to “global financial security”.
But wait a minute. Isn’t the US government itself a group that has consistently and systematically threatened the US dollar? Is the US military machine systematically plunged into an economic crisis after the foreign economy has fallen into the abyss of wartime destruction?
Leaving the gold anchor, the constant issuance of money to finance endless wars and create a large credit bubble will cause huge losses. It seems that Facebook staff should write a letter to the FBI telling them to look in the mirror and stop threatening "global financial stability."
How does the United States respond to "threats"
Recent US military interventions in Libya and Iraq have illustrated some key things. The same is true of the media’s current political policy regarding Iran. These events have a strange commonality. They involve countries or political leaders who have or are trying to give up the dollar as the world's reserve currency.
Libyan leader Muammar Gaddafi gave up the dollar before the US and NATO-backed forces in 2011, supporting Dinar, the anchor gold. Iraq announced that it will sell the US dollar in 2000. Soon after, the unilaterally launched and seemingly endless US military rampage in the desert. Just last month, Iran’s Foreign Minister Mohammad Javad Zarif called on countries to stop using the dollar:
"The power of the United States depends on the dollar; if the dollar is eliminated from the national economies, a large part of the US economy will disappear."
It would seem too naive to call it all just a coincidence.
Decentralization of the Swiss government
According to official statistics, Switzerland is a semi-direct democratic federal republic. This is a tedious word that can be more simply translated as: more decentralized than many other governments. In Switzerland, the highest legislative body, the federal parliament, is divided into two groups, the National Council and the State Council (states). Another institution, called the Federal Council, has executive power and consists of seven members sharing power with each other.
What is really interesting is that the Swiss constitution can be changed by referendum, and any citizen can challenge new legislation by collecting signatures. More accurately 50,000 signatures. If this number of signatures is reached, a vote is placed and a specific law is accepted or rejected. In other words, although still a very centralized and mandatory system, the Swiss model is more direct, more open and more dispersed than other types of systems, especially compared to the United States.
World Frontiers: Watches, Particle Accelerators and Swiss Bank
This relative decentralization of government may be the reason why Geneva and Switzerland as a center of innovation, scientific progress and high quality craftsmanship. Not to mention the banking industry, which is more unparalleled than any other country. This high-level world business and financial center is enough to make the Swiss country and Facebook's Libra project attacked by the geopolitical economic interests of the United States.
As early as March 2016, Obama gave a speech at the South West (SXSW) Music Festival. He mentioned the issue of emergency encryption technology:
"If you can't solve this problem at all, the government can't get in, so everyone will carry a Swiss bank account with them."
At that time, many people in the field of cryptocurrency said that "yes, that's the point!" Interestingly, among the banks in the world, the banks that are now being criticized by Congress are the most intimate and safest banks. This seems to really anger politicians and legislators.
A brief history of the Swiss banking industry
The banking industry is a symbol of Switzerland. Since the beginning of the 18th century, Swiss banks have provided shelter for wealthy foreign powers and business interests in underground bunkers. Using their neutrality, Swiss banks are said to protect everything from Jewish assets to Nazi gold.
Since competition with large banks in London, Paris and Berlin was almost impossible in the early 20th century, Swiss banks began to promote themselves as tax havens for anyone who needs privacy. In fact, according to some people, this is a conscious strategic move. Swiss historian Sébastien Gyx pointed out:
"This is what the Swiss bourgeoisie thinks: this is our future. We will play the contradictions between the major European powers and be protected by neutrality. Our strengths will be industry and finance."
Privacy is under attack
Like Bitcoin and Libra, UBS has been repeatedly attacked by regulators and foreign interest groups in history. Even during the Second World War, when many people believed that privacy should be sacrificed for international security, Swiss banking institutions still chose to keep secret. Leaking customer information in Switzerland is not only a formal criminal offence, but sometimes it's a bit like a sacred vow that is not spoken.
Obama’s comments on cryptography have returned to an important reality. In other words, the privacy of the Swiss banking industry has been and will continue to be used for ethical or immoral reasons. Just like bitcoin. Just like any other tool.
However, this does not justify depriving anyone of their privacy because they may be annoying to the tool. Unlike London, Switzerland does not have the age requirement to buy a butter knife. Unless the US is finally in a similar baby state, it will require more privacy and decentralization.
Decentralization: the ubiquitous mode of progress
US interests and quasi-private companies in Geneva are locked. What happened next was just speculation that the global market seems to be waiting and waiting. Sitting down and looking at two behemoths, it may be interesting to have two anti-social entities on the world stage to fight. Especially for those who encrypt money and liberalism. Interesting, but at the same time very disturbing.
Of course, Switzerland is not a harmless kitten. The Swiss government also has violent, centralized mob rule, one side of the blood money machine, like any other place. They helped the Nazis to promote themselves as heroes by ostensibly helping persecuted Jews and have always presented a peaceful and neutral image. This is not the real reason for bragging. But it doesn't matter.
What is important here is proof of concept. Regardless of the intention of this or that market participant, government or government agency, decentralization is effective. Regardless of the nature of the user who uses the tool. Privacy is effective. Stimulate innovation, maintain greater robustness and value, and improve the quality of life.
Education next generation cryptocurrency enthusiasts
All of this has extremely valuable meaning. If relatively decentralized decentralization can already lead to such large-scale advances in banking, watch, web technology and Switzerland, then full decentralization and freedom may bring more benefits.
Going to a cashless society
There is a prediction. It is possible to achieve global cashless. This has long been discussed by elite banking interest groups, and Hegel's dialectical strategy is often used to achieve various political purposes. Take the Tonkin Bay incident and Vietnam as an example. Or the 9/11 tragedy was used to prove military intervention in a country that was completely unrelated to the Iraqi incident.
Zuckerberg challenged the Fed. The Fed delayed the response. Then the Fed and Zuckerberg worked together to make a happy compromise. However, to fully explore this now, it will bring things too far.
Here's an idea: the Global Monetary Union. No one can call it a viable or political expediency. However, like all incredible ideas, at least in principle it is more than you think. This idea is not new. Richard Cooper of Harvard University proposed a single world currency in foreign affairs in 1984. He was not the first person to think of it. This seems to be a weird idea, and it still remains. But recently there have been a lot of things that make it worth considering.
Cryptographic currency: solid like gold, soft like water
It is clear that digital assets are the direction of technology and social development. Resisting this trend is almost impossible. In the future, digital assets are the direction of finance, and people want to make sure they have a safe, private and sound currency. It is like gold accumulating deep underground at the foot of the Swiss Alps. But now you can transfer and consume just touch a small screen.
It doesn't matter whether Maxine Waters and her colleagues really take big steps on Facebook, or whether the Swiss government really tries to help persecute Jewish people's goodwill. These are not important. Even quantum physicists are not important to what the essence of reality itself says.
The reason why these things are not important is simple:
Because of anger or not, good bankers, whether simulated or not, privacy and decentralization are proven, through the use of test cases, in this way to obtain a reasonable return on money and better quality of life.