Bitmex CEO: Libra Will Destroy Traditional Commercial Banks And PayPal Is Screwed Anyway
Reactions have continued to trail Facebook’s official announcement of its own digital asset called the Libra and its governing body, The Libra Association. Since the announcement was made and its whitepaper released, reactions have been mostly mixed with some applauding the move as a huge win for the cryptocurrency sector because a giant player like Facebook has officially joined. On the other hand, naysayers have criticized the asset’s largely centralized nature and have also raised reservations regarding Facebook's privacy issues. Now, another comment has been made connecting Facebook and its Libra to the possible demise of traditional payment systems including commercial banks and PayPal.
Banks Will Be Relegated
Arthur Hayes, the CEO of cryptocurrency exchange and derivatives trading platform, Bitmex, has said during a recent interview, that Facebook's Libra could possibly make the current system of commercial banks completely obsolete. For PayPal, his prognosis was a bit grimmer.
Hayes made these comments while speaking at the 2019 Asia Blockchain Summit (ABS), forecasting the impending collapse of payment transaction platforms based on fiat. He believes that the world's banking systems should be concerned, suggesting that their current mode of operation can easily be degraded and replaced. According to him:
“All a bank is relegated to is a dumb node that holds fiat currency in electronic form at the Central Bank.”
Even though the Libra is currently all about cryptocurrency, Hayes believes that this is just an early stage for the project. He believes that sooner than later, Facebook and the Libra Association will begin to offer other forms of financial services, including loans, which could easily disrupt anything similar, currently being done by traditional commercial banks. He said:
“The Libra has the potential to completely disintermediate commercial banks entirely, and destroy their revenue-generating possibilities.”
What About PayPal?
He also touched on PayPal, suggesting that the worldwide online payments company has no future. According to him, PayPal's fate is a lot worse than that of the commercial banks and its demise isn't even predicated on the success of the Libra. As far as Hayes is concerned,
“PayPal's f***** anyway”
“Release The Tape You Coward”
This isn't the first time Hayes would speak so definitively about traditional financial systems especially as they compare with the cryptocurrency sector. In a few other instances, including his Twitter page, Hayes has repeatedly expressed his views in support of digital assets.
Recently, during the Asia Blockchain Summit, Hayes had a well-publicized debate with a popular American economist, Nouriel Roubini. Roubini, who is well known for his strong anti-crypto beliefs accused Hayes and the organizers of the Summit for collaborating to suppress the debate and deciding not to have it properly broadcast or recorded.
Angrily taking to Twitter to air his grievance, Roubini said:
“Another @CryptoHayes scam: he didn't allow the blockchain conference to record our debate or beam it live. He controls the only recording of it and will only release heavily edited “highlights”. I destroyed @CryptoHayes in the debate and he is hiding. RELEASE THE TAPE YOU COWARD!”
This isn't the first time the two of them will go at each other's necks online and after Roubini insinuated that the ABS organizers along with Bitmex and Hayes are a “mafia hush money racket”, Hayes responded saying “Don't worry our tapes will expose your thin grasp of economics and technology.”