Ever since the announcement of Facebook’s coin, Libra, it has been a topic of discussion by the people as well the government agencies. The controversy surrounds from its centralization to so many organizations that are backing up the project has been criticized.
The biggest concern of the government is that the cryptocurrency as an individual might do well in the market, but the whole crypto world will get disturbed. However, Anthony Pompliano believes that Wall Street Banks will be a bigger problem for Libra as compared to cryptocurrencies.
The cryptocurrency was criticized mainly by financial organizations earlier because of their lack of inherent value, but things have changed since then. Now more and more financial industry players from different economic and financial sectors are entering the space, and Wall Street banks are not far behind.
With financial institutions like Goldman Sachs and Wells Fargo preparing for their digital currency, things can end up with close competition between them. Pompliano, on the other, said that the JMP Coin and Wells Fargo Digital Cash is presented as a digital currency, but it is not.
Pompliano suggested that the regulators should restrict the Wall Street Banks from entering the market of digital currencies to avoid the systematic risk that will arise from their ability to create an independent corporate central bank.