Is a Facebook Cryptocurrency Payment Coin Going to Have a Sunny or Shady Forecast?
According to a recent report released by the Wall Street Journal a few days ago, Facebook is building a network of online merchants and financial institutions to accept its virtual currency. The largest social network around the world wants to raise $1 billion in funds in order to fund its stablecoin project called Project Libra.
Facebook Could Be Developing a Stablecoin
There were several rumors regarding Facebook’s blockchain and crypto projects. One of these projects is called Project Libra and it is expected to be working for WhatsApp users in India. The intention is to provide Indian users with a stablecoin to perform cross-border transactions and help make the remittance market more efficient.
The project could include e-commerce payments on Facebook and other websites and rewards for viewing ads, shopping online and interacting with content as well. Project Libra would almost compete against other rivals such as Apple Pay or PayPal, that have millions of users around the world.
However, Facebook has been involved in different controversies over the last few years due to the way in which it handled data from users. In 2014, the company sold data of 87 million users to Cambridge Analytica without the consent of the users, violating its own privacy policies. Thus, users will be giving Facebook with financial information about how users spend their money, how often, how much, where and for what.
Facebook has also revealed that it stored hundreds of millions of passwords in plaintext format since 2012. That means that although there were no attacks and breaches, employees at the platform could have used these passwords without permission. That means that users would be trusting a company that secures passwords in a very simple and inefficient way.
Meanwhile, Bitcoin (BTC) and other digital assets offer many benefits compared to Facebook’s digital currency. The first point to mention is that Bitcoin is decentralized and it is censorship resistant. There is no party that can freeze a Bitcoin wallet or transaction. Facebook, as the centralized authority controlling the funds that are moved through its platform, can easily freeze the funds that users manage.
Thus, users should know that Facebook is going to be storing financial data and using it for companies to be able to plan their marketing strategies. This is just more private information that users will be providing to one of the largest companies around the world dealing with users’ information.
There are other social networks that are working on their own digital assets, including Kik (KIN), Telegram – with the Telegram Open Network (TON) – and many others. In the future, Facebook could expand the use of its virtual currency to other platforms such as WhatsApp, Instagram and Messenger. Additionally, other countries besides India could be included as well.