The Libra cryptocurrency, created by Facebook and already beloved by many giant companies, claims to be able to solve the issues of traditional currencies, while overcoming the obstacles of bitcoin and other major cryptocurrencies to mass adoption.
With more than 2 billion Facebook -owned app users worldwide, many have heralded Libra's potential to become the world's first mainstream cryptocurrency , yet others have questioned the motivations behind the initiative.
Unlike bitcoin, Libra's value is tied to a collection of currencies, in order to avoid price volatility – one of the main reasons people consider bitcoin unsuitable for use as a primary currency.
Despite the fact that several major retailers accept bitcoin, the world's first cryptocurrency is mostly used for speculative investments.
Libra may not be the first stablecoin , but it will be the largest and most ambitious to date.
The launch of Libra comes at a tumultuous time for Facebook, as a year ago we had the Cambridge Analytica scandal that exposed the private information of tens of millions of its users. Since then, the tech giant has been plagued by a series of data breaches that have fundamentally undermined trust in both its name and the apps that accompany it.
Critics of the new cryptocurrency include Phil Chen, a blockchain expert who pioneered the first crypto-enabled smartphone for HTC. Mr. Chen claims that Facebook’s participation means Libra is “the opposite of bitcoin” and another step towards complete control over data and users.
“If you were worried about Facebook knowing too much or having too much access to your personal data… the global currency is the most invasive and dangerous form of surveillance ever devised,” Mr Chen told The Independent.
«If adopted globally, we are forced to consider Facebook as one of the 10 largest companies for the next 100 years that have full ownership of the customer and their data.»
It remains to be seen whether Mr. Chen will be right. What do you think?
