Facebook Libra - Welcome to Cryptocurrency
Despite a shaky 2018, I'm sure we don't have to tell you about Cambridge Analytica, Facebook has never been one to shy away from new things, it has revolutionised social media and created the all encapsulating network we know today.
Just when we thought their global domination was at its peak, Libra is announced.
Unlike brand new crypto projects, with an estimated 1.47 billion users already logging in to Facebook daily, Libra is the perfect platform for a mass of instant adoption - but what is it?
Way back in 2018, Facebook first began dropping subtle hints of Libra. It announced the creation of a dedicated team to explore blockchain technology fronted by David Marcus, who spent 3 years at PayPal, 2 of which were President. He then joined Facebook, initially as VP of Messaging Products and since has gone on to become Head Of Calibra (more on Calibra later).
However, it wasn’t until last month that Libra hit the headlines, when Facebook released their whitepaper on the product.
Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people. Put simply, users will be able to buy and send money with minimal transaction fees, with retail spending options built into 3rd party wallet apps, such as those used for BitCoin.
Along with Libra Facebook will also be releasing Calibra, its own crypto wallet app which will be available on Facebook, Messenger and Whatapp for public use.
Now, we know that Facebook is no stranger to controversy, go ahead and have a Google to see the latest feedback to the project, including a fairly frank reaction from the US senate. So what are some of the main concerns?
Data processing has been a major issue for Facebook - how will this be any different?
Calibria will be handling all Crypto dealings and protecting users’ privacy by separating your Libra payments from Facebook data. Your identity will not be tied to publicly visible transactions. This means that any data collection can’t be used for ad targeting (apparently).
Bitcoin value sways so much - will Libra be the same?
Unlike Bitcoin, Libra is being hailed as a “stablecoin”, which assures retailers that payment with the system on Day 1, won’t be worthless come Day 2. This is possible via ties to various financial pots which offset major fluctuation in any currency to allow Libra to remain stable.
With Facebook already being such a major player, should one company have the opportunity for such global control?
Introducing the Libra Association, a non-for-profit organisation who for the founding members. This includes; Visa, eBay, Uber Technologies, and Vodafone Group.
Our thoughts? With the coin due to be released in 2020, Facebook still have a long way to go (if current reactions are anything to go by) to convince the ones in charge that this is a good idea. If they can launch, Libra certainly has the potential to bring cryptocurrency to the masses like no other has and change how we use currency.
Watch this space...
Come in for a chat and a damn good cup of coffee. We’d be delighted to hear what you’ve got planned and how we can help you with your project.