Facebook’s new cryptocurrency is the subject of some newfound hate and anger amongst blockchain enthusiasts.
Non-Fans of Facebook Coin
One of those enthusiasts is Jake Yocom-Piatt, the co-founder and project leader of Decred. In a recent interview, Yocom-Piatt described Facebook as the “antithesis” of what cryptocurrency stands for. He comments:
Facebook is the antithesis of what cryptocurrency stands for: decentralization, privacy and security. It’s a corporate entity with centralized control that’s under scrutiny for egregious breaches of privacy and security. Now, they’re looking to intrude even more into their users’ lives. If you thought Facebook knew too much about you before, this will only make it worse.
Global head of Ledger Vault Demetrious Skalkotos also says that crypto is based on the idea of security for all users, something Facebook is not widely known for. He states:
As large organizations continue to move into the space, it’s important to pay attention to security. Secure storage of large digital asset funds is complex and established companies like Facebook need safe storage solutions.
In addition, other sources are claiming that Facebook is not qualified to enter the crypto arena following its scandal with Cambridge Analytica last year. The idea of a company that spied on users and sold their private data to third parties for advertising purposes is something that completely goes against the privacy and security protocols of cryptocurrencies. Thus, Facebook has no place in the crypto world.
Roneil Rumburg, co-founder and CEO of Audius, is also skeptical of Facebook’s entry into crypto, claiming that Facebook doesn’t know what it means to be decentralized. He states:
I’m excited by the prospect of Facebook bringing its user base into the world of programmable money. It legitimizes our industry to a more mainstream audience, which is good news for crypto-native products like ours. However, I’m skeptical Facebook can create something truly decentralized, permission-less or private. These goals contradict their recent actions as a centralized corporation that monetizes data. A centralized payment solution dressed up as cryptocurrency could be damaging to those of us trying to embrace what makes these open protocols so novel from a governance standpoint.
A Hint of Positivity
However, others don’t see it that way, and believe Facebook’s entrance into cryptocurrency serves as another example of the space’s growing validity.
Ajeet Khurana, CEO of Zebpay, believes this very thing, commenting:
Facebook’s crypto ambitions are yet another validation of the blockchain and crypto ecosystem, which has seen a tremendous uptick in institutional enthusiasm at the beginning of 2019, from JP Morgan Coin to Jaguar’s IOTA scheme to everything in-between. To those of us in the space, it has been obvious that crypto and tokenization is the future. It’s great to see our conviction getting validated every day.