Money 2.0 Stuff: $LIT

I am suffering from Facebook Fatigue Syndrome, as, I assume, are you. But I am also conscious that Mark Zuckerburg, an avid reader of this column I hear, would be disappointed if I did not take the opportunity to share a few opinions on the Libra launch, and I really do not wish to disappoint Mark. The way things are looking, my future access to the global financial system may intimately depend on not disappointing Mark. This one’s for you, Mark.

Libra will be backed by a basket of assets composed of currencies and short-dated government bonds but managed by a consortium of corporates. This last detail means that it falls under the non-sovereign currency definition. I don’t know if non-sovereign currency is a widely accepted term. It could well be. I just made it up on the spot. The point, dear reader, is that, up until today, the majority of the world’s population has interacted solely with sovereign currencies. The Libra announcement catalyzes the realization that the definition of money is not inextricably linked to the state.