Since news first broke about Facebook 's Libra cryptocurrency , it has faced a number of problems. And now another issue has arisen, as the Mark Zuckerberg-owned company is accused of stealing the idea for its new digital currency from a team at MIT .
According to Alex Lipton, Thomas Hardjono, and Alex “Sandy” Pentland of MIT, the plans Facebook has presented regarding Libra are so identical to their Trade Coin that it cannot be a coincidence.
As both coins have some similarities, Lipton suggested that Facebook has taken many features from their Trade Coin design and made no mention of the MIT fellows.
MIT's digital currency paper was published in the Royal Society's Open Science last year
Similarities between Libra and TradeCoin
According to Lipton, both Libra and Trade Coin aim to provide easy and convenient transactions, both on local and cross-border platforms. In addition, both currencies aim to provide financial services to developing countries.
Other problems with Libra
In addition to the accusation that he stole the Trade Coin idea, Alex Lipton also ridiculed Libra, saying that it will be issued without security, which is one of the major problems with Facebook's new digital currency. He also suggests that the Libra Cryptocurrency will lead to inflation in developing countries.
The category and proposed topics are only one aspect of the Libra Project, since as it seems one of the most significant problems with the digital currency is concerns around security.
The US Treasury Secretary suggested that Cryptocurrencies like Libra could lead to various illegal activities such as terrorism. Therefore, the project is recommended not to start yet.
Considering all the difficulties that Facebook's new ambitious project seems to be facing, it remains to be seen how well it will be able to succeed once it is officially launched.
