Facebook Libra Currency In Hot Water As Authorities Raise Eyebrows!

Must Read

Apple Has Finally Found The Right Partners To Launch Apple Cars By 2025

Rumours of a possible Apple Car in the making has been doing rounds for quite some time. But so...

What is the Value of Auditing a Marketing Campaign?

As a general rule, reviewing business best practices is not considered an exciting task. Rather, most business leaders would...

Superstitions across different countries – An Overview

Some believe that a superstition is anything that people believe that is based on myth, magic, or irrational thoughts. They are beliefs that are steeped in lore or tradition, and it is usually difficult to pinpoint the exact origin. Here is a brief compilation of Superstitions which are prevalent across different countries.

Last month Facebook announced its new digital currency Libra, something similar to Bitcoin, for use around the world. The currency, however, is still in the limited rollout and is slated to public launch in 2020. But, the announcement has apparently opened a pandora box, as authorities appear to be quite concerning about the aftermath of Libra in the market.

In the light of the privacy issues of Facebook, besides the antitrust amongst users, lawmakers and global regulators are now demanding the project Libra to be discontinued

Jerome Powell, the Federal Reserve Chair recently stated that the move by Facebook poses a lot of serious concerns to global financial stability. This is in addition to issues like consumer protection, money laundering as well as user privacy. 

Advertisements

It is similar to the concerns raised by regulators from Asia and Europe. One of the biggest concerns is that Libra will be run by Facebook and its partners and will be further regulated by a non-profit association called Libra Association, which has its headquarters in Geneva. This wold allows the blockchain-based currency to operate a global financial network which lies outside the regulations and frameworks set by the central banks. 

Additionally, since all transaction records are maintained in an encrypted ledger, the Libra Blockchain will have a permanent record of all transactions done by people, which makes us question the privacy of these individuals.  

Facebook Libra: Other concerns

That’s not all the authorities are concerned about. There are additional issues in places including the clarity on the strategy to tackle countries where Facebook does not plan to operate the currency. For example, Facebook does not have any business in China, which has questioned the effects of the global systemic risks and spillover of Libra. The currency could give rise to instability in a lot of developing countries if people switch to Libra from their locally used currency. 

Chris Hughes, the co-founder of Facebook, also reportedly said that this currency could potentially interrupt and incapacitate countries around the world by empowering people to stop using their local currencies and use one that would lead to a decentralised form of governance.

Facebook Libra: The Pros

Being in the nascent stage, indeed, Facebook Libra has got a lot many questions to answer. But, it also offers a lot more benefits to the system. Libra would act as a means of money transfer across different borders without attracting extra fees. Libra could also be useful to those who want to start their online business but do not have credit cards or bank accounts. Moreover, Facebook could also use it to attract an increased number of people to purchase products or services from the different ads that are available on the platform. 

Advertisements

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Google’s Dirty Secret Has Left Android Users In Australia Stunned, Strikes Back!

After going head-to-head with Google to make the search giant agreeing to its Media Bargaining Code, Australia is now...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This