How Facebook’s libra cryptocurrency could actually help the public

If the project collapses under the weight of its contradictions it would at least show Mark Zuckerberg that there are limits to his disruptive power, writes James Moore

Shadows gather over libra: Facebook’s ‘stablecoin’ cryptocurrency (AFP/Getty)

They didn’t approach us or any of the other major banks but when we looked at it we just couldn’t understand how it would work.” This is the view of a major banking group on the subject of libra, Facebook’s so-called “stablecoin”. A Bitcoin you can use to buy stuff with the help of the social network.

Libra’s supporters, and there still remain a few outside of the tech giant’s California HQ, could counter with something like “well they would say that wouldn’t they because it threatens their business model”.

But the project’s first board meeting was held in Geneva yesterday without Mastercard, Visa, Stripe, eBay, Mercado Pago, all of which pulled out last week, and PayPal, which quit earlier this month.