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Facebook’s Libra too ambitious?

Facebook Libra

Power desperately finds ways to propagate at the slightest hint of losing lustre, which the social network is beginning to experience at the moment.

What is Libra anyway?

Libra is a virtual currency proposed by a facebook-led private consortium, with a reserve unlike the Bitcoin. That means Libra would have an initial capital funded by the consortium to help make it a stable currency such as the dollar.

Users could trade globally enjoying lower costs, enhanced speed and high security- on platforms run by Facebook ( calibra ) and associates.

According to Facebook, Libra is intended to ensure financial inclusion.But how this will achieve in countries like India, where the currency would not charm the people, government or regulatory easily, it not yet quite clear.

How it’s going to affect privacy
A social network must remain a social network and first prove it is indeed one. Not a bank.Damning revelations concerning ethics, privacy and transparency notwithstanding.

Facebook a tech giant with an exclusive window to our private lives, launching its own currency if of course the natural curse, to coax us back into compliance, away from brewing skepticism.

How much Bitcoin has capitalized
Facebook’s sketchy white paper on Libra, its proposed virtual currency, probably drawing much from the libertarian Bitcoin, is no doubt attempt to capitalize on the 2.4 billion users it has collected in such a short span, eventually to wield a grip on the still vulnerable global financial system gradually recovering from a crisis.

What happens if the project goes ahead
Facebook stands 90th in the world in terms of GDP, along with many other firms of such standing which would want to effect and dictate global monetary policy if the project goes ahead and realises its commercial goal, which in all likelihood is very much possible. Because, Facebook has built its applications and networks already. It doesn’t require to sign people up. 

What is Cryptocurrency?
It is virtual money which should only be used for non-financial purposes along the lines of loyalty points, airline miles, etc, which could be exchanged for real cash transactions such as discounts. It poses the danger of fraud. If Facebook uses Libra to clock up loyalty points which is fine But can’t link it to your bank account says an expert.

How Bitcoin works ?
Bitcoin works as people trust it over government-regulated money. It has no reserve. It appreciates if more people are using it. Now, Facebook is offering a tweak. Unlink Bitcoin, Libra will have a reserve setup by the consortium. In short, don’t trust the government, not the liberal bitcoin, but a private entity with a reserve.

Facebook led big tech wants to be virtual country ?
Facebook’s argument may be convincing provided the clout, security infrastructure and reach.

But what is worrying is Facebook-led big tech now wants to be a virtual country, with its own economy, not having to bow down to nation states and regulators, because they think they are powerful enough to do so.