It's good to have alternatives to government-created currencies
House members summoned Facebook's Mark Zuckerberg to Washington, D.C., and grilled him -- harshly -- about his plan to create a new currency, Libra.
"Why should we trust you?!" asked Congressman Mike Doyle.
I liked it when Zuckerberg said, "I actually don't know if Libra's going to work, but I believe that it's important to try new things."
He was right. That's very important.
The Libra would make it easier to transfer money anywhere in the world. It also promises stability. Its value would be based on a basket of currencies from different countries, which would protect Libra owners from inflation in any one country.
It's an idea that deserves a try.
But it may never be tried because the clueless politicians' threats of punitive regulation scared off many of its supporters.
Politicians want to crack down on Libra "because they're threatened by it," says tech reporter Naomi Brockwell in my new video. "This is going to be competition for the U.S. dollar. Government doesn't like competition."
Governments also like to control any money that we might use.
"Want to send money to Russia to a family member; it's going to be censored. You want to send money to a relief effort in Venezuela; it's going to be censored," says Brockwell. But if you use a cryptocurrency like Libra or Bitcoin, "your money will get through. That's an incredibly powerful tool that gives people the freedom to spend their money where they want to spend it."