Click For Photo: https://cdn.cnsnews.com/facebook_app_photo_by_alastair_pike-afp-getty_images.jpg
As Facebook faces growing criticism for bias and privacy issues, it is moving ahead with a massive new project. The giant tech firm is putting together a consortium to launch a cryptocurrency.
Everything about the project should trigger red flags. The possibility of abuse is everywhere. However, Facebook is treating it like one more app or start-up in its vast cyber-empire.
Currency - Libra - Deposits - Unit - Basket
The new currency will be called the Libra. It will be fully backed by deposits and presented as a unit based on a basket of real currencies, which will be controlled by an independent board of partners in Geneva, Switzerland. Because the unit’s value is defined by reliable currencies, the Libra is not expected to be unstable, like Bitcoin or other such experiments. It can thus function like money as a means of exchange and not a volatile, speculative commodity.
On the surface, the move is marketed as a means to buy and sell instantly and everywhere. It would help the poor by allowing the transfer of money internationally for a minimal fee. The system will circumvent banks and cut out the middle man. A borderless currency would be one more way to take power away from abusive government.
Surface - Benefits - Dangers - Unit - Ways
However, such surface benefits hide more profound dangers involving the new unit. In some ways, this system would merely replace old problems with new ones on a much vaster scale.
For all the talk of helping the poor, the Libra will effectively become the in-house currency for the 2.7 billion users of Facebook, and its Instagram and WhatsApp applications. Sharing in the project are big brand tech companies like Visa, MasterCard, PayPal, eBay, Lyft, Uber and Spotify. Because of their large platforms, they too will profit from the Libra.
Player - Facebook - Power
The main player, however, will always be Facebook, where most of the power will be centralized....
Wake Up To Breaking News!