Thanks to @antoniomc27 for bringing up the topic on Facebook's new cryptocurrency and crypto adoption.
The whitepaper, for 'Libra', the multi-currency backed stablecoin used for purchases in products such as Facebook Messenger and WhatsApp with zero fees, is slated to be released as soon as tomorrow, 18 June 2019.
Quick and light read on the situation thus far:
In May, 2019, Libra Networks was registered in Switzerland, with ‘Facebook Global Holdings’ as stakeholder.
Libra Networks' purpose, according to its registration in Switzerland: "Provision of services in the fields of finance and technology, as well as the development and production of related software and infrastructure, particularly in connection with investment activities, the payment operation, the financing, identity management, data analysis, big data, blockchain and other technologies"
Its financial backers include: Visa, Mastercard, PayPal and Uber (according to a report in The Wall Street Journal)
'Libra' is expected to be transferable through products such as Facebook Messenger and WhatsApp, with zero fees
Laura McCracken, Facebook’s Head of Financial Services and Payment Partnerships for Northern Europe, detailed that the primary purpose of the new currency is to function as a Stablecoin
What is a Stablecoin?
Sources: 1, 2, 3
Some concerns expressed online:
- From opinion piece by crypto news site Crypto Briefing's editorial team, titled Reject Facebook And Libra: An Open Letter to Our Non-Crypto Friends:
"Truly decentralized blockchains, like Bitcoin’s, are controlled by no single person or entity."
"Libra will be a centralized cryptocurrency, despite efforts to involve stakeholders such as other payment companies – which is likely a ploy to avoid the regulatory issues that have plagued the cryptocurrency industry to date."
"From the Cambridge Analytica scandal to the data breach of 50 million users late last year, Facebook’s interest in you is not personal, and he is not sorry."
Some proponents of the project say:
- "Facebook’s cryptocurrency will be a powerful force for good in developing countries" - Forbes Contributor
- Facebook's reach across the globe may help with Bitcoin adoption
Disclaimer: Nothing in this article should be construed as, constitute, or form a recommendation, financial advice, or an offer from Funding Societies. We are not to be held accountable for any losses on any investments made by readers. The content and materials made available are for informational purposes only.
What do you think?
Will the release of this cryptocurrency will be bullish or bearish for the industry?
Do you think we could ignore our memories of the Cambridge Analytica scandal, in judging this huge move by Facebook?
Can regulatory uncertainties be eventually resolved?
Aside from the above questions, a really important one would be -- will you support this project?