Nouriel Roubini Claims GlobalCoin From Facebook Isn’t Even A Real Cryptocurrency

  • Nouriel Roubini does not believe GlobalCoin will use blockchain technology.
  • The whitepaper for the social media digital asset will be released tomorrow.

Nouriel Roubini is well known for disdain of the cryptocurrency market, though he is better known as an economist.

Speaking with CoinDesk, Roubini commented that the new cryptocurrency coming from Facebook, GlobalCoin, is not even really cryptocurrency. His opinion holds some weight, considering that he predicted the financial crash that took over 2007 and 2008, earning him the nickname “Dr. Doom.”

As he spoke with the news media outlet, he said that this statement comes from the fact that GlobalCoin is not directly intertwined with blockchain technology. He added:

“Fully private, controlled, centralized, verified and authorized by a small number of permissioned nodes. So, what is crypto or blockchain about it? None.”

In other reports, Facebook has already accumulated many backers for the cryptocurrency asset, which is meant to be a stablecoin that has been backed up by multiple fiat currencies. The backers are expected to invest $10 million in this effort, creating a team to govern the cryptocurrency. Right now, the investors allegedly include Mastercard, Visa, PayPal, and Uber.

Roubini acknowledged that the public will not really know about the specifics of GlobalCoin until the release of the whitepaper, which is due tomorrow. However, he said it was not very likely that GlobalCoin would end up using proof-of-work, proof-of-stake, or other common blockchain technologies. Emphasizing his statement, Roubini added: “Why would they?”

Even though there have been many individuals directly involved with the cryptocurrency community that have criticized Facebook’s new token for not actually being a crypto asset, Roubini refused to be lumped in with the “crypto faithful.” He has already been quoted in saying:

“Enterprise DLT [distributed ledger technology] is blockchain in name only … so some crypto faithful may agree on that.”

Wrapping up the conversation with CoinDesk, he called the idea of having a truly decentralized blockchain with no trust and available to the public is “a pipe dream.” He added, “So we disagree on 99% of the substance.”

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