What about Libra coin?

Updated: Aug 19, 2020

Libra is a cryptocurrency like a more centralized Bitcoin or Lite coin and has its value attached to fiat currency. However it is different in one major way. Libra coin was proposed and backed by the tech giant Facebook. It is not released yet but is planned to be launched in 2020.

Facebook claims to be aiming to help underprivileged people around the globe who need access to a "stable", "fast", and "secure" financial infrastructure. However the goal of every company is to make money, and getting people who are not in the banking system yet into their system will be difficult considering credit checks will not be possible, and letting any person into the system may cause big problems such as money laundering. The aim of Libra is most definitely not what Facebook seems to suggest.

Although Libra coin has not been launched yet, Facebook has become the focus of some lawmakers. Lawmakers say Libra coin can easily entrench consumers in debt if they are not careful due to the abstraction of money.

Many critics also say that a tech giant controlling a currency is a dangerous idea and that power should only be reserved for governments. Many say that a company in control of a currency is bound to use it in nefarious purposes.

19 views0 comments