Crypto Community Awaits Facebook’s Details on Libra Coin
Facebook is scheduled to release the White Paper on its new cryptocurrency, renamed to Libra Coin.
Libra Coin, Facebook’s proposition for blockchain-based payment, will be revealed this week through a White Paper published by the social media. The crypto community views the project with some skepticism, due to the potential for Libra to become a centrally controlled digital asset. Big questions are also raised, on whether a coin that could potentially reach more than 2 billion users, would be able to topple Bitcoin (BTC), or even Ripple’s XRP.
The White Paper is expected to be published later on Tuesday, during USA business hours. So far, there are no details on the type of blockchain for Libra, as well as the total supply and issuance mechanism. The issue of a digital asset, scheduled for early 2020, is a foray into fintech, as Facebook has previously considered adding its native fintech solution.
What is currently known is that Libra Coin was branded back in February, and a foundation was established in Switzerland in May. Facebook is in preliminary exploratory talks with the Commodities Futures Trading Commission to see if Libra Coin would fall under the scope of the regulator. The new coin will serve the WhatsApp chat and be available to international markets.
Libra Coin will be officially announced just days before the Financial Action Task Force (FATF) is set to release a paper recommending international measures on handling cryptocurrencies. The intention is to limit anonymity and increase transparency.
On the regulatory side, Facebook has also consulted the Governor of the Bank of England regarding the role of a digital asset in the money-creation mechanism.
On the positive side, Facebook’s move to create its own coin arrives after years of skepticism and even outright bans on advertising digital assets. The crypto community views this as a vindication and a win for blockchain technology.
The arrival of Libra worried those that see the crypto community as an opportunity for private transactions. Facebook has long been immersed in scandals related to user privacy and data manipulations. A Reddit thread showed increased skepticism about the project:
“'Libra' is an Orwellian nightmare. It wasn't enough for Facebook to have all your data on everything they do on their site and the internet (even if you don't have an account, they have some of your data), now they'll have data on everything you buy too. And if you ever exchange that for a real cryptocurrency then they'll also have access to all of your transactions on the blockchain.”