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| Libra Facebook |
Facebook Inc. plans to launch a digital currency (cryptocurrency) named Libra.
The launch of this digital currency has expanded the Facebook business network not only to social networks but also extends to e-commerce and digital payments at the global level.
The company has been connected with 28 partners based in Geneva, Switzerland called the Libra Association. The presence of this association will regulate the work of new digital coins which will be launched in the first half of 2020, according to executives.
Facebook has also created a subsidiary called Calibra, which will offer digital wallets for storing, sending and offering Libra.
Later Calibra will be connected to the Facebook Messenger and WhatsApp platforms which now have one billion users.
The company, based in Menlo Park, California, has high hopes for Libra, but is still hampered by privacy protection policies and personal data that consumers can stumbling block in the future.
However, the company founded by Mark Zuckerberg has an ambition that Libra is not only strengthens electronic transactions between upper middle class consumers and global business networks, but also offers consumers untouched access to banking finance.
The use of the Libra name itself was inspired by heavy gauges in Roman times, as a sign of astrology to symbolize justice and freedom, according to former PayPal executive David Marcus who led the Facebook project.
"Freedom, justice and money, that's exactly what we are trying to do here," Marcus said, as reported by Reuters on Tuesday (6/18).
To launch this digital currency, Facebook must be willing to reach deeper pockets so that it drains revenue from Facebook instant messaging application.
This is a consequence that has already happened to Chinese social applications such as WeChat.
Facebook executives claim to have reported to regulators in the United States and abroad regarding the launch of this cryptocurrency.
Unfortunately they did not want to specify what regulators or institutions to apply for the financial permit.
Facebook Blockchain Product Vice President Kevin Weil hopes that global regulators can approve this plan so that this product can be widely marketed.
"This gives us the basis to go on and have productive conversations with regulators around the world. We really want to do that," Weil said.
The launch of Libra comes when Facebook is struggling in a number of scandals, so they must face the problem of protecting privacy and personal data of users, policy regulators and members of parliament.
Some opponents of Facebook even called the company to be punished or broken down by force due to errors in handling user data.
In addition, Facebook is considered unable to filter hoax information in the 2019 American elections allegedly conducted by Russia.
The question will arise how the parliament or regulator's reaction to Facebook plan to enter the world of cryptocurrency is currently not officially regulated.
Moreover, in recent years, cryptocurrency investors have lost hundreds of millions of dollars as a result of hackers and the market has also been plagued by allegations of money laundering, drug sales and terrorist funding.
Source: tribunnews.com/bisnis/
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