Facebook's cryptocurrency is way more ambitious than bitcoin, says Tally CEO Jason Brown

Jason Brown, Tally CEO, an automated debt manager and financial app, joins “Squawk Alley” to discuss the differences between Facebook’s cryptocurrency Libra and bitcoin.


  • Dollar $, Euro €, GBP, Yen are back by nothing (gold standard canceled by President Nixon 1971). So, Facebook "Libra" is backed by Dollar $, Euro €, GBP, Yen. In conclusion Facebook Libra = backed by nothing

  • Bitcoin is NOT primarily about "betting this asset is going up." It is about a TOTALLY decentralized financial system creating a "digital gold." Yes, the first investors/miners will get rich, but that's like every other invention. Those who take great risk at the beginning get the reward. It's ironic that this guy would impugn the motives of many Bitcoin believers while he pushes a supposed competitor that will undoubtedly net millions in various fees.

    Libra is a hybrid of a crypto and a fiat: a "stablecoin." It will be based on a basket of currencies. Almost certainly USD, EUR, GBP, AND JPY. Thus Libra can't be a threat to those currencies; only smaller currencies. Bitcoin is a potential threat to ALL currencies if successful. Libra is a worthy experiment that could be very helpful to those in the developing world, but never compare it to Bitcoin directly. Bitcoin is Libra on steriods.

  • Imagine a Bitcoin, except not decentralized, that steals your private information and provides it to Facebook as well as associates and the government, and provides no protection against a global monetary crisis. That's Libra. Sign me up.

  • Your money and a bank is back by the FDIC. Your bank or credit union can protect you from fraud use. They can return your money if stolen by criminal activity. Will Facebook do this? I highly doubt it.

  • A Facebook stablecoin tied to global currencies that have infinite supply. ?. What happens in a world economic recession. ?

    Does this guy even know what bitcoin is.

  • David Marcus did a good job of a simple explanation of the difference between libra and bitcoin. Bitcoin is an attempt to create an artificial value outside any government control. The key value of cryptography to bitcoin is establishing a limit on the number of bitcoins that can be created. The goal of bitcoin is to con people into believing that the limitation on the number of bitcoins gives it some magic value. By contrast libra is an exchange mechanism. Somebody buys some number of libra with some national currency and exchanges those libra with someone else. The libra always have a fixed value in national currency. It is not totally clear how the pool of national currency that has been exchanged for the digital coins will be managed. But, presumably it has to be something like a bank checking account where users can exchange unlimited amounts of their digital coins for national currencies any time they want. The value of cryptography for libra is just facilitation the transactions that exchange the digital coins. The only real change to government control from Facebook's project is getting around American government control of international dollar transactions.