Here’s a digestible breakdown of the Who, What, Where, and How of some of the scams currently floating around.
Facebook’s Libra Cryptocurrency May Revolutionize E-Commerce
Anyone who’s recently gone through online registration has seen the option to sail through the process via their Facebook account. Little did we know that courtesy of Facebook’s Libra cryptocurrency, global online shoppers may soon see a revolutionary option at checkout – to pay for products and services with Facebook’s cryptocurrency, scheduled to roll out in 2020. Even prior to launch, it’s causing unparalleled worldwide discussions.
Facebook unveils new Libra cryptocurrency
In a fresh-out Libra white paper, Facebook announced the soon-to-come launch of its cryptocurrency, developed by Facebook’s own Blockchain department founded in 2018 and famed for its ‘secretive’ workings.
The Blockchain-based cryptocurrency, named Libra for the Roman unit of weight measure (and bringing to mind the association with the French ‘libre’, meaning ‘free’) is designed for almost free money transfers between friends on Facebook, Facebook Messenger, and WhatsApp. Ultimate goals include in-app purchases and e-commerce.
“We believe that the world needs a global, digitally native currency that brings together the attributes of the world’s best currencies: stability, low inflation, wide global acceptance, and fungibility. The Libra currency is designed to help with these global needs, aiming to expand how money works for more people around the world.”
– Libra white paper
Unlike cryptocurrencies such as Bitcoin, Facebook’s Libra cryptocurrency is referred to as “stablecoin”. This means that it will not be an “alternative” to global currencies, but rather a new ‘stable’ digital currency.
Libra will charge close to zero fees for national and international money transfers, giving it huge potential to become the world’s top digital currency. It is also designed to give the 1.7 billion people in the world without bank accounts free access to internet purchases and online money transfers.
Libra privacy speculations
Amidst official disputes about Facebook’s privacy violations, US and UK officials met announcements about the coming Libra cryptocurrency with concerns.
The U.S. Senate Committee on Banking, Housing, and Urban affairs addressed a letter to Mark Zuckerberg. It was filled with security, trustworthiness, and privacy questions underlying the Libra cryptocurrency.
In its turn, the Libra white paper underlines (and in its way, answers to) the security and reliability of its Blockchain and new technologies:
“’Move’ is a new programming language for implementing custom transaction logic and “smart contracts” on the Libra Blockchain. Because of Libra’s goal to one day serve billions of people, Move is designed with safety and security as the highest priorities.”
Impact of Libra cryptocurrency on e-commerce
To fund, develop and launch Libra, Facebook founded the Libra Association. The founding members and investors include several dozen corporations including payment giants Mastercard, Visa, and PayPal; technology companies and marketplaces Ebay, Uber, and Spotify; and nonprofit organizations Mercy Corps and Women’s World Banking, among others.
The Libra project is set to launch in 2020, by which time the scope of partners and investors in Facebook’s Libra Association is planned to reach 100. Facebook is currently encouraging developers and companies to work with Libra and plans to launch incentives and rewards for Libra cryptocurrency-friendly merchants.
The financial backing of global corporations and the growing network of partners means that Facebook’s Libra currency has everything needed to become a game-changer in the e-commerce market.