Steve Forbes, the chairman and Editor-in-Chief of Forbes Media, recently sent Mark Zuckerberg an open letter urging the founder of Facebook to change the name of the social media giant’s upcoming Libra stablecoin as well as back it with gold.
Forbes has praised Facebook’s forthcoming crypto initiative stating that Facebook’s Libra has the potential to become one of the greatest inventions of all time. Furthermore, Forbes believes that the stablecoin could possibly replace the US dollar as the leading global currency.
He added that in order to become one of history’s genuinely seminal inventions, Libra should be backed by gold. In his open letter, he opposes Facebook’s plan to support its coin with several other cryptocurrencies. Forbes explains that gold would be the perfect fit for Libra’s goal of providing a stable currency.
“For a variety of reasons, gold holds its intrinsic value better than anything else. It’s like a measuring rod. It no more restricts the money supply than the 12 inches in a foot restricts the size of a building you might wish to construct. All it means is that the Libra will have what no other currency has today: a fixed value.”
As per the editor-in-chief, Libra as a stablecoin makes it the most attractive form of exchange as it can be used for both day-to-day transactions and in the long term.
Furthermore, the businessman also warned Zuckerberg in his letter that Libra’s consultants and investors would criticize the idea of backing the stablecoin with gold despite it presenting advantages in that it stops well-capitalized imitators.
Lastly, in his conclusion, he urges Zuckerberg to change the name from Libra to Mark. He references the adverse sentiment surrounding the term “Libra” which of course was used to refer to a measure of weight from the obliterated Roman Empire.