Libra: Facebook’s new currency shows the great Dilemma of the group

June 20, 2019

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With the crypto-currency Libra wants to create Facebook’s own currency – and by the way, the biggest problems of Bitcoin and co. fix. But at the same time, the group tries everything in order as far as it goes to distance of Libra. Because, although the payment would not have been possible without the group as possible, the brand of Facebook at the same time its greatest danger.

the Plan is ambitious. Libra is not only Facebook’s own currency, but around the world for payments in all kinds of services, and to Send money to each other are used. In this case, the means of payment to the currencies of the major problems with the other Crypto, a slow Transfer, as well as part of strong price fluctuations, easily solve. In addition, they should allow free Transfers between the classical state currencies.

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The brand as a curse and a blessing

That Libra has a Chance, thanks to the 2020 proposed project the brand’s Facebook. 28 high-profile Partner was able to win the Social Media giant to launch, including Vodafone, Ebay, Spotify, but also other Online payment experts, such as Paypal and the credit card companies Mastercard and Visa. The customers can use Libra, so at the Start of many important points of contact. A small Start-up without Facebook’s big names would not have done that for sure.

On the other hand, the Name Facebook is the greatest risk of Libra. This is also the group know. “Some of the articles, calling the currency “Zuck-Bucks (Bucks are a Slang-expression-for-Dollar, editor’s note), or Face-Coin referred to. If that’s so, the currency is virtually dead,” said David Marcus to “Wired”. The weight: Marcus is not only the former President of Paypal – but has developed as a Facebook Manager, Libra.

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Marcus had planned from the beginning to operate Libra, regardless of Facebook. The simple reason is likely to be the current sentiment towards the group: For years, Facebook makes with a data scandal after the next headlines. No wonder, then, that the group risk is considered by many to long ago as a huge data. How should you move the users to their payments made via Facebook handle?

the response from The Facebook Manager the unusual structure of the currency. Libra is an officially by Facebook independent Association in which all partners have equal voting rights. Also the transactions don’t run on Facebook’s servers, but on of the partners, provided the node points. Facebook is conscious of this fact as one of many. Also the data streams of payments should not be with the group divided. Facebook ruled specifically as if you had to do with the end virtually nothing. At least on paper.

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In practice, the Whole thing looks a bit different. Libra is so far developed only by Facebook employees. Also in the case of the use of Facebook has currently priority. Although you should be able to save the currency also on other places and to exchange, is likely to send a lot of users in everyday life, but on Facebook-services: Whatsapp and the Messenger should be able to send Libra-stock markets get over the users of money to each other. Facebook stresses that you can’t see the content of the transactions, who sends money to whom, and when that happens, will be for the group, but evaluated.

Whether the Plan is working to remove Libra from the group, will have to show. So far, the coverage and the political reaction to Libra focuses less on the many possibilities of the currency, and Facebook’s privacy efforts, but especially the close Association with the group. This should remain so, should Marcus keep’ pessimistic adoption law and Libra would be already doomed before the Start to Fail.