(Photo credit: Glen Carrie)
I recently shared a status about Facebook’s Libra and my concern on a probable deeper agenda hidden behind it. Here, I’m going to share a better point of reference for me and whoever might find them interesting.
In their White paper attached bellow this article, Libra believes that “people will increasingly trust decentralized forms of governance.” Personally, I strongly believe that blockchain technology and cryptocurrency can be an engine for inclusion, but should we trust Facebook’s Libra?
My greatest concerns with Libra is that Facebook and a consortium of big firms control the fate of a currency that could be potentially used by billions of people, not as an asset that grows in value but a liability that need to be used on a daily basis.
That’s why Facebook is not here to compete with bitcoin.
Remember, the US went off the gold standard in 1971. Since 1971, U.S. citizens have relied on the “full faith and credit” of the U.S. Government. Same thing with all other citizens around the world who have as well relied on the full faith and credit to their government. This could lead to one single point of failure in the hands of a company that has a conspicuous trust problem.
Libra may have an opportunity to drive crypto adoption, put blockchain-based systems in the conversation and bank the unbanked, still to me it will remain a centralized wolf in a decentralized sheep’s closing.
Facebook claims peoples identities won’t be merged with their financial data, yet every single product developed by Facebook has an identity-driven approach to maintain a safe usage environment. Honestly, I’m not so sure that I’ll ever be going to buy Libra, nor do I believe Libra is as decentralized as it claims it to be. Thus, my opinion above should prompt suspicion about Facebook’s intentions with Libra.
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