As it seems to be a never-ending quest to conquer over the world, Facebook is also building a network of on-line merchants and financial institutions to support its new upcoming cryptocurrency. The WSJ recently ‘reported‘ that Mark Zuckerberg’s is additionally searching for $1 Bln’s to fund its secretive stablecoin project, Project Libra, and is in talks with several other renowned companies like Visa and Mastercard to finance that cash.
Facebook’s Needs Investment For Its Upcoming Project ‘Libra’
The company started Project ‘Libra‘ over a year earlier as a very straight-forward way to transfer money between WhatsApp users. However in its very ‘phase‘ right now, it has matured far beyond that its original scope.
The project has explained to incorporate e-commerce payments on Facebook along with other websites in addition with offering rewards for viewing ads, on-line shopping, and interacting with the content.
Facebook’s 2.38 Bln monthly active users simply sum upto that, at its project launch, Libra would immediately compete with rivals like Apple Pay [383M] and PayPal [267M]. However considering another prospects of the story, there are several other reasons why you, and everybody else, ought to avoid Facebook’s upcoming crypto-currency.
Facebook And Trust Issues
Now let’s take a way down memory lane to remember the days that Facebook proved it should be nowhere close to your money.
There’s no other good place to start out thinking rather than Facebook’s earlier Cambridge Analytica scandal – the mac daddy of screw-ups. Earlier in 2014, the social media company sold the private information of around ‘87 Mln users‘ to Cambridge Analytica without the users’ consent. While doing so, was direct violation of the company’s privacy policies but that ended up in nothing.
Adding your financial information to the huge pile of private data that Facebook already has on you, sounds like asking for trouble.
Facebook And Security
If Facebook’s information breaches weren’t enough to scare you, so let’s now examine the steps company uses to handle your opted passwords.
Earlier in March, Facebook stated that it had been storing millions and millions of account passwords in a very decipherable, ‘plaintext format‘ since 2012. Though there was no proof that outside parties had access to the passwords, but still the employees might grab them with ease.
On the another hand, juts don’t chuck the company’s Amazon snafu that ‘exposed‘ the information from over 500 Mln accounts either.
Moreover, by trusting any amount of money to a company that can’t even secure passwords, then you’re effectively putting a signal on your back that claims, “Please return and rob me!”
There’s Still More, What Facebook Can Might Do?
The one renowned thing about Bitcoin [BTC] and other crypto assets is the beauty that they’re censorship-resistant. No single party is able to freeze your Bitcoin wallet or block a transaction while Facebook can, is able to block your associated account whenever it desires The company’s already begun showing this overreach of power with its recent account ‘bans‘.
Just earlier this week, Facebook declared the bans of many people including Alex Jones, Louis Farrakhan, along with Milo Yiannopoulos. Representatives from the company ‘explained‘ that they were found violating the platform’s policies on hate speech and promoting violence.
While that reasoning might hold, it sets a dangerous precedent for future action. This forbidding simply demonstrates that Facebook has the option to freeze your assets if it doesn’t share your specific views and may block transactions to causes it might not support.
What Could This All Mean For The Facebook’s Upcoming Project?
Facebook’s cryptocurrency comes with all kinds of associated risks with the company behind it and thereby none of these are the actual benefits of owning a cryptocurrency. Anyone hyping it up as a step toward mass adoption merely doesn’t perceive what makes crypto assets so unique.
If you’re searching for a currency with poor security and oppressive censorship, invest your money into Facebook. Otherwise If not, just stay away far from it.