Despite Facebook declaring it has backing from over a dozen firms for the project “Libra,” reports suggest that the media giant is far from ready due to software unpreparedness, with one source suggesting early 2020 as the likely date for testing.
Detractors claim that Facebook’s attempt to launch its own cryptocurrency is purely a way of creating its own super mall where FB can boost its product sales and net users can sidestep familiar payment methods and web payment systems.
Facebook has announced that it already has Visa, Mastercard, PayPal, and Uber on board, despite claims elsewhere that delay to date are because the industry doesn’t perceive Facebook’s proposed coin as a true cryptocurrency. The FB coin, it is also argued can present no challenge to Bitcoin which has gained popularity, simply because it requires a storage and payment facility which doesn’t need to go through financial giants such as Visa and Mastercard.
Other sources suggest that Facebook is hoping to attract 100 members to the project’s governing consortium securing USD 1 billion in the process. The consortium amongst others will include venture capital firms Andreessen Horowitz and Union Square Ventures, Coinbase, and non-profit organization Mercy Corps.
The development of Facebook Coin raises concerns for many in the industry, due to the media giant’s record on earning its revenue, particularly last year’s Cambridge Analytica Scandal when customers’ information was shared between Cambridge and Facebook for advertising purposes. Users are hoping that a higher standard of ethics is one of the critical prerequisites necessary for any coin launch. The company is hoping that such fears can be allayed by the hiring of Standard Chartered’s Europe head of corporate and public affairs, Edward Bowles.
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