Facebook’s Libra cryptocurrency criticised at Senate hearing
Facebook’s new cryptocurrency plan has come under attack at a U.S. Senate hearing. Politicians are calling the company ‘delusional’ and untrustworthy.
The Senate officials had been grilling Facebook executive David Marcus over the tech giant’s intention to launch its own digital currency.
Facebook was told to clean up its act before launching a new business model.
The U.S. President, Federal Reserve Chair, Bank of England Governor, and France’s finance minister have spoken up against the idea. They are not fans of Facebook’s new crypto plan. They intend to implement firm governance and central bank control over this new cryptocurrency, if it sees the light of day.
Many of the world’s top financial policymakers are worried about Facebook’s plans to launch a digital currency.
Serious concern
Facebook’s progress in Artificial Intelligence (AI) is worrying. Their artificial intelligence team has made what it describes as a ‘superhuman’ poker champion, an A.I. bot named Pluribus, which has the ability to beat world-leading human poker playing pros.
If you mix that up with banking, global stock markets and currencies what do you get? One big financial headache!
This is so worrying at so many levels, a combination of a new potentially volatile cryptocurrency, artificial intelligence and poker winning software! Would you trust such a company with your money?
Past and well documented concerns of consumer data privacy remain unresolved too.
Bad idea
Facebook’s planned Libra cryptocurrency faced further opposition when the U.S. treasury secretary warned about its potential criminal use.
Steven Mnuchin remarked, it could be used by ‘money launderers and terrorist financiers’ and said it was a national security issue.
Condemned
U.S. lawmakers have laid into Facebook again over its planned cryptocurrency, after a bruising first bout on Tuesday 17th July 2019, when senators condemned the project, saying the company had not shown it could be trusted.
Facebook’s cryptocurrency has the potential to yield immense economic power and that could destabilize currencies and even countries. The sheer number of users on Facebook’s platforms would probably mean it would be adopted too quickly, and that’s the worry!
My biggest concern about Facebook’s foray in to cryptocurrency is Calibra – in that they own it!
It may well be that Facebook is trying to demonstrate it has ‘detached’ itself from Libra by linking up with other big household names to give the project more credibility. But, the company will own Calibra, it is its own service and Calibra is the digital wallet that will hold consumers digital money.
And this digital money will be controlled by one of the most powerful company’s in the world. Just stop and think about that for a moment. What will it really mean for you and me?
Trust
Facebook has not proved it can be trusted with our personal data – this has been demonstrated by recent privacy scandals. And to think, we may allow an A.I. meddling company such as this, with unlimited access to our personal data, run our money too! This is a cocktail for disaster!
Please, wake me up from this Orwellian nightmare! This is deeply concerning. Are we about to sleepwalk into an apocalyptic digital nightmare?
They are not doing this for fun nor I doubt for our benefit!
Facebook will know too much and control too much. Its reach in to our lives will become too invasive. It will become far too powerful (if it isn’t already).
Accident waiting to happen
Sounds like a perfect recipe for disaster!
Stock markets, banks and currencies around the world – WATCH OUT! Facebook’s cryptocurrency is coming for you!
I can’t defend Facebook’s crypto’ plan in any way, I’m not a fan. But, it will probably happen in one way or another. I’ve heard it said that if they don’t do it – someone else will.
Is this really a good enough reason?