Libra made a lot of headlines when it was announced. The Facebook driven digital currency has sent regulators scurrying in fear.
Many feel the Libra will completely alter the world of finance. It has the potential to replace many fiat currencies, especially if the 1B Facebook users start to embrace it.
The challenge with the Libra is that there is a swap of one devil for another. Hence, it is not a solution for humanity.
Fortunately, there are a lot of things taking place that are proving how broken the system truly is.
The Turkish Government is the latest to join the fray. According to reports, the Turkish tax office froze near 4M bank accounts without warning.
Those affected are both individuals and companies that are above a certain level in taxes owed. The biggest challenge is company accounts were frozen, meaning salaries cannot be paid.
Here is the crux of the problem: With a centrally controlled system like the world of banking is, people are at the mercy of entities that might not have their best interest at heart.
Enter the world of decentralized blockchain and cryptocurrencies.
When one is operating on a permissionless blockchain, there is no entity in control. A government agency cannot knock on a companies door since there is nobody controlling the blockchain. Accounts are secure from the threat of being frozen or closed. This is not true in the banking world.
The sad reality is people accept this behavior since it is normal. Banks have been hitting up accounts for decades. Fees and other expenses are deducted often without recourse. Governments can also do some devious things in an effort to get what they want.
In other words, people’s money really is not theirs if a large entity decides otherwise.
What is ironic, countries are at the mercy of larger entities. Venezuela just had its assets in the United States taken because the Administration decided this was to be. Anyone, government, company, or individual, who operates in the present system is at risk.
Naturally, there are millions who are embracing something different. Each unit of fiat that ends up in cryptocurrency is removed from the existing system. It is to protect wealth in the sense that nobody can get at it as long as it is secured in an individual wallet. Governments of the world cannot freeze a Bitcoin, as an example, account. Nobody can touch it unless he or she has the key.