Facebook’s founder Mark Zuckerberg has just tried to defend his “cryptocurrency” project Libre, however, in doing so he completely missed the issue most people have and the fact that it is actually a centralized stable coin.
One of the CNBC subsidiary accounts posted the short clip where Zuckerberg is explaining why Facebook decided to take on other partners to establish Libra and despite having founded it would only be holding one vote.
— CNBC's Fast Money (@CNBCFastMoney) June 26, 2019
Zuckerberg explains that “establishing a financial system” is a huge task and taking on partners was the eventual choice. Whereas, Facebook may be working with as many as one hundred companies in the founding consortium.
He furthers that, Libra Foundation would be an “independent” organization with no major influences trickling down from Facebook besides the one vote rights.
However, what he fails to understand is the fact that Facebook has lost people’s respect a long time ago when Facebook had failed them more than once over the years followed by a Zuckerberg non-apology apology at the Senate standing committee hearing.
Since cryptocurrency is mostly driven by Millenials and Xennials in most parts of the world who rejected Facebook back in 2018 when reports of mass Facebook app uninstalls emerged.
On top of that, Facebook tried to veil their stablecoin under the term cryptocurrency in the white paper triggering negative sentiments from the cryptocurrency community.
The nail in the coffin, however, is that Facebook is promoting Libra to be a blockchain project, however, the project does not have any nodes. This coupled with the centralized governing body that is ruled by the initial investors chosen and approved by Facebook, unlike decentralized cryptocurrency.
Notorious Partners on Libra Project
Although not all, at least three of the Facebook partners; eBay, Uber and the Card System solutions have had major security breaches that allowed hackers to not only hurt revenues but also steal consumer data on a mass level.
Among the three forty-million (40m) user’s Master Card information was stolen from Card System solutions, whereas, eBay lost one hundred and forty-five million user’s data.
Uber, however, is the most notorious of all, since the company decided to stay quite about the fifty-thousand (50,000) drivers’ data breach for six months which they found after months of breach date.
The second time, Uber managed to lose another fifty-million (50m) users’ data. This is in addition that Uber is quickly losing popularity in South Asia where the Facebook Libra pilot project was initially established.
Facebook has partnered with a number of organizations for Libra who have seen similar data breach issues such as Facebook, which is now acting as the cherry on top.
Facebook’s stablecoin project Libra hasn’t taken the flight but landed in more trouble than the creators may possibly be expecting.
On the other hand, Libra’s launch is definitely going to increase more awareness towards cryptoucrrency given the move from Facebook.