Jim Cramer Says Facebook Should Drop Libra

According to “Mad Money” host Jim Cramer, Facebook needs to drop its cryptocurrency Libra and it is better to invest in Square.

Cramer says Facebook’s Libra is “clearly doing more harm than good.”

It was in June that Facebook announced Libra, a new digital currency and financial system to transform the way money moves around the world.

“We’ve seen internet change the game for everything that could be digitized, except for money,” said David Marcus, the leader of Facebook’s Calibra division.

“The numbers really speak for themselves. There’s 1.7 billion people around the world that are unbanked, the same number are underserved by financial services,” said Marcus, who before taking over Facebook’s blockchain initiatives ran its Messenger division and was previously president of PayPal. “Now, anyone with a cheap smartphone has access to all the info they want in the world for free with a basic data plan. Why doesn’t money work the same way?”

“It may sound super controversial but there’s no better way to demonstrate the evolution of our thinking, what we know we should control and what we should not and can not control,” Marcus said. “A network that enables billions of people to move money around the world should not be something we can or should control.”

Libra has been met with a lot of opposition already in D.C.

“Instead, just take some of your money, you want to get into payments, just go buy Square [for] $70 billion … Square Cash is going to be Facebook Cash,” CNBC’s Cramer said.

“If [Facebook would] simply bring in some unassailable outside counsel with real credibility … then maybe the government would allow them to self-regulate again,” he added.

Cramer is not worried about the company in part “because their Instagram business is on fire.”

Disclaimer: We have no position in Facebook, Inc. Common Stock (NASDAQ: FB) and have not been compensated for this article.