OREANDA-NEWS Facebook and its friends-companies decided that the world needs another cryptocurrency, and that launching a new virtual coin is the best way to use the tremendous opportunities at their disposal. Such plans suggest that something is wrong with the twenty-first century American capitalism.

To some extent, this is a curious time to launch an alternative currency. In the past, complaints about traditional currencies were mainly related to their volatility, and fast and uncertain inflationary fluctuations made them a poor store of value. At the same time, the dollar, the euro, the yen and the yuan showed amazing stability. Today, on the contrary, deflation, and not inflation, is worrisome.

The basis of each currency is confidence and trust that hard-earned dollars invested in it will be paid on demand. The private banking sector has long shown its insecurity in this regard, and that is why new regulations are needed to regulate financial services.

However, Facebook won this mistrust in just a few years. Over and over, Facebook executives, choosing between money and fulfilling their promises, prefer money. And nothing can be associated with money more than the creation of a new currency. And today, nobody trusts Facebook for their financial well-being.