Facebook unveiled its cryptocurrency project Libra on a website today. The protocol will initially host a crypto token of the same name. Basically, the token will act as a stable coin across different social media platforms owned by Facebook and can be easily cashed.
However, the token has raised some major death flags even before it is released. As governments see Libra as a way to control finances in the digital world, they may make it inaccessible for the public.
Libra от Facebook будет запрещена на территории России. Без вариантов.
— Vladislav Ginko (@martik) June 18, 2019
The token will require government-issued ID for using it but for a company that may become a hub for payments supporting transactions worth billions of dollars those powers are terrifying. Moreover, Russia may block Facebook and its related applications to stop people from using Libra.
Another source described it as little more than a scheme to expand monetary reserve on a global scale.
It is predicted that the way things are proceeding Libra would survive for around a hundred days before it faces blanket shutdowns.
Analyzing the white paper, we can see that the system is not designed as a blockchain. The administration promises a transition to Proof-of-stake protocol but previous networks such as Ethereum still face many problems on this protocol.
Crypto website manager Jameson Lopp stated that the project will be the world’s first distributed network that will go from being “permissioned to permissionless” while noting that the project lacks obvious characteristics of a blockchain.
Facebook advertises Libra as decentralized on its technical documents when it is a centralized network according to its white paper.
