In early 2019, Facebook made a huge announcement regarding the introduction of Facebook Libra. Facebook Libra is the name given to the new cryptocurrency that is expected to be launched anytime next year. The world is changing and we have to change with it. The way we do transactions is also changing. In the old days, people traded things, which were replaced by paper money, which was eventually replaced by plastic. The same way crypt currency is the newest introduction in the arena.
The concept of cryptocurrency has been around since the 1980s however in the present world we have more opportunities and possibilities to use cryptocurrency. The decision-makers at Facebook are intelligent people. Facebook isn’t just a social media site where you can talk to your friends and like their pictures. It has turned into a very popular business hub and Facebook realized that. They also realize the potential of cryptocurrency in the current and future markets. This is why they want to introduce their cryptocurrency in the market however Facebook’s recent security breach and their clash with the authorities has made people wary of the company. This is why it didn’t sit well with many people in the Congress and the Senate when Facebook announced its cryptocurrency.
The Senate recently called a hearing and put some very tough questions in front of one of the directors of Facebook’s coin base, Mr. David Marcus. Many important things happened at the hearing.
No One Pressed the Like Button on Facebook
One major take away from the hearing was that the politicians and regulators do not trust Facebook. Most of the senators were wary of the fact that Facebook has had mishaps in the past which they called a “learning experience” and then went back to doing something equally unacceptable. It’s safe to say there aren’t many fans of Facebook at the Hill.
Facebook Is Too Big and Dangerous
Facebook is a very large and powerful corporation. It is too large to fail which is also a big concern for the regulators. They don’t want to give too much power in the hands of a privately owned tech company. Recently a lot of tech companies have shown interest in the relevant market. This hearing made it clear that the authorities will not let any large tech companies take over the global economy.
Facebook Isn’t Secure
Facebook has had its share of mishaps. They have also been exposed to leaking user data. Now the main question that senators had was regarding the security. Facebook’s David Marcus kept reiterating that Facebook does not have any reason to collect customer’s financial data however the senators were not having any of it. Another thing that was made clear in the hearing was that the senate believes that Facebook authorities do not fulfill their promises.
Facebook Can Be Unstoppable
Before Libra, the most important and talked about player in the market was Bitcoin, but people have now started focusing on Facebook and left Bitcoin alone for a moment. This shows the level of concern authorities have for Facebook Libra. One very important take away from the hearing was that if Facebook is allowed to have their currency then they can be an unstoppable political and financial force and it would also impact the currencies that the Libra is going to be pegged against.
Might Start A New Bill
After viewing the fact that there were so many companies in the market that are already in the cryptocurrency business or thinking about starting their cryptocurrency, the senators came up with the idea of introducing a new bill on the house floor. One thing is very clear from this senate hearing that we will ‘very soon’ see a bill that will stop tech companies from getting too much power.