When Facebook confirmed in early 2019 that it was developing a cryptocurrency the news was met with a mixture of excitement and cautious skepticism. Regulators throughout the world have expressed their concerns about the social media giant entering the crypto arena. With the launch of Libra growing ever nearer those concerns have only deepened.
Government leaders in the US, including President Donald Trump, seem to view the Libra cryptocurrency as a threat to the US dollar. Most leaders realize that Facebook has the potential to accomplish what no other cryptocurrency has done. It can bring crypto to the mainstream.
The social media giant wields considerable influence over the sentiment and opinions of millions of people. More than two billion people use Facebook on a monthly basis. It is also a concern to some that Facebook has already lined up an impressive array of partners for its Libra projects. These partners include Uber and Visa. A number of other partners that were originally on board have now withdrawn their participation in the wake of concerns.
The US is joined by France and Germany in raising the question of whether Libra has the potential to disrupt the world’s financial system. Those who back cryptocurrencies like Bitcoin argue that disruption is exactly what cryptocurrencies and blockchain technology are designed to accomplish. There may be another issue, however, that is provoking hesitancy.
Facebook has recently been called to answer for privacy issues. The company has admitted that it has had problems with the protection of user data in the past. According to cointelegraph.com, many are worried that privacy issues could extend to the users of Libra once the token is launched.
For many regulators there is a willingness to adopt a wait-and-see approach. Others want answers before the token launches. In either case Facebook Libra has a large mountain to climb before its cryptocurrency is embraced by the global financial sector.
