Forbes Suggest Backing Libra With Gold, While Binance Conveys Its Interest To Join Facebook Project

Gin Chao, the strategy officer of Binance cryptocurreny exchange, is very much thrilled about the Libra project and shared the excitement with BlockTV regarding the official talks the firm had with social media platform giant Facebook.

In other news, Steve Forbes, Chairman and Editor-in-Chief of Forbes Media, released an open letter to Mark Zuckerberg, suggesting to peg the planned stable coin Libra with gold.

Chao warned that negotiations were in their preliminary stage and Binance is “looking forward to working with libra as much as we can.” He further said

“I think the potential that libra can have, not just on mass adoption but what it means to payments and forcing regulators’ hands to catch up a bit, is all good news.”

Chao, in an interview with Finance Magnates at the FinTech Junction Conference in Tel Aviv, disclosed that the talks between Binance and Facebook “have largely focused on dealing with infrastructure.”

Regarding listing on Binance exchange, Chao said: “It wouldn’t just be in [Facebook’s] interest to list their coin on our exchange. It would also be in their interest to list on other exchanges as well and that’s probably going to happen. So if they decide to go on a public chain, and they get the sort of adoption that they could get, we would probably want to list them.”

Chao also affirmed that Binance “would like to throw its hat in the ring” by turning into a validator node on the Libra network. Forbes, in its letter, firmly supported Facebook’s crypto endeavor, stressing Libra’s capability to turn into one of the greatest innovations across the globe, eventually displacing the greenback as the world currency.

At the same moment, to turn into “one of history’s truly seminal creations,” Libra has to be pegged to gold as a fundamental condition. Forbes also opposes Facebook’s intention to back the stablecoin with a basket of currencies. The top media firm executive elaborated that the precious metal would perfectly suit Libra’s objective of creating a “truly stable cryptocurrency.”

Forbes has listed the reasons for suggesting Libra to be backed with Gold. Forbes said “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.”

Forbes opined that Libra’s “Fixture” will turn it into a “most desirable medium of exchange around the globe,” as it can be utilized in day-to-day dealings in addition to long-term investing. Forbes has also cautioned Zuckerberg that Libra’s consultants will most probably give opinions against the gold-backing idea, still asserting that it would “actually be an advantage” as it will stave off “well-capitalized imitators.”

Finally, Forbes also suggested Zuckerberg to look at the option of rechristening Libra to Mark, indirectly referring to the ill fortune history of the term ‘Libra.’ In particular, Forbes reminded that the term ‘Libra’ was used as a reference term for weight during the era of Roman Empire, which got desired. On the contrary, as Forbes points out, Mark refers to the Germany’s currency which was abandoned for the euro.

In the meantime, in a recent discussion with Cass Sunstein, a professor at Harvard University, Zuckerberg asserted that Libra would be backed by as many as 100 enterprises from the present level of 27, including Uber and Visa. A report by The New Yorker points that Goldman Sachs, Fidelity, JP Morgan Chase and other key US banks have stayed away from the Libra project.