Outrage Over Facebook’s Libra Project Grows

 In Market News

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Outrage Over Facebook’s Libra Project Grows

Ever since the announcement of Facebook’s Libra project, all other cryptocurrency news and discussions have taken a backseat. That is both unsurprising and warranted, as the debate over Libra is the most important moment in cryptocurrency since the launches of both Bitcoin and Ethereum in years past.

The reason behind Libra’s importance is easy enough to see. Because Facebook’s built-in network totals higher than a billion users, it is in a uniquely advanced positioned to take cryptocurrency to adoption levels previously unseen. Whichever way regulators decide to come down on Libra will determine much about how other blockchain projects can expect to proceed. 

In effect, Libra’s entrance into the blockchain space has taken the discussion from the little leagues to the big leagues in just the span of a few weeks. While global regulators were initially silent, they’ve become increasingly outspoken in recent days as they begin to understand the Libra project’s scope in greater detail.

Watchdog Groups Ask for Immediate Halt to Libra’s Development

Some groups and regulators have chosen to measure their words carefully by asking for nothing more than additional time to study Facebook’s proposal with the Libra project. Meanwhile, others are beginning to call for strong and immediate action to be taken towards stopping the Libra project altogether. 

The main concern held by watchdog groups posting to the Public Citizen is that Libra holds too much potential power in its hands over the financial future of the world. There are worries that the unbanked – who make up Libra’s primary demographic – will owe fealty to Facebook as they become dependent on the network for their economic well-being and connection to global markets. 

Such loyalty could provoke nations, especially those without a strong economic development, to become destabilized as their currencies become useless in the face of Libra’s global cryptocurrency. 

Facebook Moving too Fast

Facebook is moving swiftly to grab hold of as many of the unbanked as possible in a bid for what seems like social and economic world domination. That speed doesn’t sit well with some global regulators, such as those in the UK. 

Facebook’s rise to prominence came on the heels of its ‘move fast, break things’ motto. Rather than think twice and ensure that no mistakes are made, Facebook believes in acting first – then thinking of the consequences later. While that attitude has served the company well as its unparalleled growth has put its population above and beyond that of China’s, it gives regulators who are faced with the Libra cryptocurrency project a sense of dread. 

That’s owing to the many questions raised by the Libra project as related to the effects it may have on global currencies and whether Facebook users, who are also the citizens of sovereign nations, will ditch traditional currencies in favor of Libra.

The prospect of losing users for currencies like USD, GBP, EUR, and JPY is a none-too-thrilling prospect for the central banks, countries, and regulators who depend on those users for maintaining domestic and global power.

As the debate over Libra heats up, other blockchain projects will surely keep a close eye to see which, if any, modifications are necessary for their own technologies.

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