Mark Cuban: Libra Cryptocurrency Is A ‘Big Mistake’

Libra cryptocurrency

Adding to the ranks of government leaders and others who have criticized Libra, billionaire tech businessman Mark Cuban has called out Facebook’s digital currency venture. Cuban, who is a “Shark Tank” investor and owner of the Dallas Mavericks, believes that it is “a big mistake,” CNBC reported.

The executive noted that he’s not so much worried about the impact on markets in the U.S. than at an international level. Cuban told CNBC in an interview, “I think globally and in countries where there isn’t a lot of rule of law, or a lot of government stability, or currency stability, then it could be dangerous.” Cuban continued, “There’s going to be some despot in some African country that gets really upset that they can’t control their currency anymore and that’s where the real problems start occurring.”

Beyond Cuban, Bank of England Governor Mark Carney and French Finance Minister Bruno Le Maire have questioned Libra. Carney recently said Libra can’t be the same unregulated type of service that Facebook is. “The Bank of England approaches Libra with an open mind but not an open door,” Carney said. “Unlike social media … the terms of engagement for innovations such as Libra must be adopted in advance of any launch.”

And President Trump recently took to Twitter to discuss digital currency and Facebook’s Libra. Trump tweeted, “I am not a fan of bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated crypto assets can facilitate unlawful behavior, including drug trade and other illegal activity.” Trump continued, “Similarly, Facebook Libra’s ‘virtual currency’ will have little standing or dependability.”

Trump joins the chorus of world leaders, banks and regulators around the world who feel that cryptocurrency is too volatile and has the potential for misuse by criminals. Bitcoin has risen in value since the announcement of Libra, but the digital token reportedly didn’t move much on the words of the president.


New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.