Five reasons not to wait for the launch of cryptocurrency Libra from Facebook

In June of 2019 Facebook announced the creation of its own cryptocurrency , called Libra. Unfortunately, the project had problems before the startup: the company was showered with criticism in the media, while the Libra itself was under heavy pressure from financial regulators. The prospects of cryptocurrency looks pretty vague, there are at least five reasons to doubt that the launch of Libra will be held in the near future and in General.

The contents

Friction with financial regulators

Libra fell under the scope of the regulators almost immediately after the announcement of the development project. Unfortunately, in the direction of the project is only one negative. One of the first about Libra spoke French Finance Minister and the representative of Germany in the European Parliament. Both countries have agreed to block the project because “no one individual can claim the right to issue money, which is the sovereignty of States.” This was stated by the Minister of Finance of Germany Olaf Scholz.

Governments and banks are afraid of competition from project Facebook. In addition, the sending means can be carried out without proper supervision, so the authorities are already talking about the prospects of using Libra for money laundering and other illegal activities. The team representatives emphasize that Libra will not try to displace Fiat currency. She's just become more convenient payment network.

Website of the project. Source: calibra.com

The loss of key allies

At the time of the announcement of the project it was 28 organizations. Their number included such giants as MasterCard, Visa, Spotify and Uber. Unfortunately, due to issues with the same financial regulators, many companies began to refuse to support Libra.

Source: Bitcoinist

The first Libra Association left PayPal, then went Visa, MasterCard, Stripe, eBay, Mercado Pago and Booking. Although representatives of the project argue that the development of the cryptocurrency will still take place as scheduled, the loss of support does not inspire confidence to investors.

The invasion of crooks

On the official website of the project says that Libra just will not start before 2020. However, this has not stopped scammers from creating clones of the token Libra, which were sold to unsuspecting investors. Of course, they had no relationship to Facebook.

For example, it looks like a fake Scam site. We talked about it in our Telegram channel.

Fake project site Calibra

The crooks want to be in. The answer, of course, no LBR’s not coming.

Another incident: Israeli insurance company Libra has filed a lawsuit against the company claiming that she was allegedly stealing their trademark. In Facebook reject such statements. It turns out that the trademark of the project “Libra Association”. This is a non-profit organization in Switzerland.

The Reputation Of Facebook

In the past the company was a major scandal, after which Facebook was ordered to pay $ 5 billion. The reason for the leak of personal data of 50 million users. This has caused serious damage to the reputation of the company and its founder mark Zuckerberg was forced to testify in the U.S. Congress. Can Libra ensure the privacy of its users?

Problems in the cryptocurrency

Libra criticized because of the unclear concepts of the functioning of the project. It can not be “opened and closed” simultaneously. Something will have to sacrifice, so in the end it is unlikely bitcoin will be at least some degree of decentralization.

During yesterday's hearing before the Committee on financial services of the house of representatives of the United States, Zuckerberg said, initially decentralization was the purpose and desire of company, but it is not a required component of the project. So a full-fledged cryptocurrency to wait just not worth it.

Mark Zuckerberg’s hearing in the Committee on financial services U.S. house of representatives on 23 October 2019. Source: video on YouTube

Even more interesting are looking for in our cryptodata millionaires. Also follow us on Yandex Zen!

SUBSCRIBE TO OUR CHANNEL IN THE TELEGRAM TO BE AWARE OF.

Leave a Reply

Your email address will not be published. Required fields are marked *