Facebook’s work on Diem, the digital currency project formerly known as Libra, has not satisfied many financial regulators. Most believe that private stablecoin could be a threat to financial markets and fiat.
Microsoft President: “Governments should be the only authority on digital money”
Brad Smith, who serves as Microsoft’s president, sided with the organizers on this issue at a conference hosted by Bank for International Settlements. According to him, when it comes to the “money supply”, governments should be the only authority to issue digital money, simply because they are “accountable to the public and always have the public interest”.
I’m also not a big fan of encouraging, wanting or wanting our participation in coin printing. I think a movement that has left this in the hands of governments for centuries is serving the world better.
While regulators remain skeptical about the idea of Diem and the specially issued stablecoin, the project takes new approaches to launching crypto. The team responsible for Diem is preparing to launch a stablecoin later this year. Their goal is “to provide a simple global currency and financial infrastructure that empowers billions of people.” They are also planning to obtain a license through the Swiss Financial Market Supervisory Authority (Finma). According to Christian Catalini, Diem’s co-inventor, the project could support the transition to CBDCs and cooperate closely with global depository banks.
“We don’t want to be a bank”
However, the Microsoft President has made quite clear the company’s opposition to projects such as Facebook’s Diem. He also said:
We are not a bank and we do not want to be a bank, we do not want to compete with our customers who are banks.
Interestingly, Smith isn’t the only Microsoft executive supporting regulators rather than new tech companies. Earlier, the founder of the company, Bill Gates, said that he has an unbiased view of the crypto asset.