Facebook, after revealing all the new developments happening to the platform at Facebook Developer Conference 2019, is now going to launch its own cryptocurrency! While there were rumors about it coming for months, it is no official. But with all the accusations in the past, no one can blame us for not trusting it! The new Facebook Cryptocurrency, dubbed “Libra“, is launching next year, according to sources.
By the rumors that were around for quite some time, the name was supposed to be “GlobalCoin”. But it was not to be. It will be named “Libra”. This is also the codename for Facebook’s blockchain project, a large part of which, is this cryptocurrency.
Facebook Cryptocurrency Overview
The cryptocurrency, Libra, will bear a likeness to BitCoin – the most popular cryptocurrency (for now). Libra will connect and associate itself to a number of currencies popular worldwide, and not only the US dollar. The company hopes to prevent the price fluctuations Bitcoin faces with this strategy.
So, this Facebook Cryptocurrency will stay stable with the help of a basket of Fiat currencies. (Fiat currency means a legal tender whose value is backed by the issuing government). This should make it more stable than the normal commodity money (backed by gold or silver, in general). Also, it will make it cross-compatible with a number of digital currencies worldwide.
Now we don’t understand everything about this currency right now. But, a white paper about its basics is going to launch on June 18. So, we’ll have to wait for more information. For now, all we have is that Facebook is already making preparations to launch the new cryptocurrency next year.
Facebook has already held talks with governor of the Bank of England and to US Treasury officials. The company also took former PayPal president to lead its blockchain division. Also, it’s contacting other US and British financial regulators to speed up the launching process. In addition, a firm called “Libra Networks” registered in Switzerland for financial services. Furthermore, Facebook also met with other cryptocurrency exchanges, Gemini and Coinbase. With all this, it is clear that Facebook is gearing up for something big.
And rightfully so. Because besides Facebook’s advertising-based revenue model, it’s also adding e-commerce to its platform. So, we can say, Facebook might be becoming similar to WeChat of China, where Facebook is inaccessible. WeChat allows its users to chat, shop, and play games without leaving its platform. It’s a one-stop solution for almost all online purposes. And with this, Facebook might become very similar.
Generally, this Facebook Cryptocurrency allows you to send money to each other, pay for things on Facebook, Whatsapp, and Instagram. And also, you can use it to pay for other online marketplaces – those who will accept this form of payment. Also, rumors suggest there will be some kind of a physical device that’ll enable you to trade your currency at Libra ATMs.
Why we don’t trust it?
Well, for starters, why would you? We are all aware of Facebook’s cloud of scandals regarding the privacy of its users. Of course, we know of Facebook’s invasive ad-targeting policies, but there are also cases of it tracking those who don’t even use Facebook!
And with its own payment system, Facebook can use its digital currency to spy on your purchases, too! Also, Facebook can use information about the users’ purchases to offer better target-adverts to attract further investment from firms. In addition, this will give a better understanding of who buys what, and the popularity of brands among Facebook users. Therefore, it will assist Facebook in measuring, ranking and targeting to amplify its core business.
Now, Facebook is already under scrutiny over various mishaps. But Facebook didn’t react to these new speculations. So, we never know what they’re planning. Only time will tell what Facebook is really after.
What do you think of Facebook Cryptocurrency? Do you think Facebook has ulterior motives? Or is it safe to trust it?