Should we be concerned regarding Facebook’s entrance into the crypto space?
Facebook and Crypto: Not Such a Great Match?
Facebook Coin has been the talk of the town, as of late. The idea that the social media conglomerate is creating its own form of crypto is dangerous to some and intriguing to others. The currency will allegedly be a stable currency, meaning it will be tied to the U.S. dollar, so it is not subjected to the same volatile properties one often attributes to mainstream forms of crypto like bitcoin, Ethereum and bitcoin cash.
In addition, the company is also developing what it’s dubbed “Project Libra,” which is a digital payment platform that will spread from Facebook to merchants with Facebook logins. The idea is that Facebook Coin will be used through the enterprise’s WhatsApp system by persons wishing to purchase goods and services through the social media company. However, Project Libra will allow them to also purchase items through retailers granted they boast Facebook login capabilities on their websites.
It’s an ambitious feat to say the least, but it does generate a few concerns among investors, crypto enthusiasts and privacy hounds. Facebook is a company whose reputation has been sullied in the past year largely because of its ties with Cambridge Analytica and the scandal that emerged in April 2018.
Chief executive of Facebook Mark Zuckerberg testified before Congress following the release of the scandalous details when it was understood that the social media company had been sharing users’ private data with third parties primarily for advertising purposes.
To be fair to Zuckerberg, he has now come forward to state that Facebook is being revamped to focus more on privacy in the future. The problem is, why didn’t he and his staff take this approach from the beginning? This is people’s personal information we’re talking about. Why not just focus on privacy from the start? Why go through this whole elaborate scandal and become the subject of widespread (negative) media coverage to get the full picture?
Privacy Should Always Come First
What’s nerve-wracking about Project Libra and Facebook Coin is that now, the social media company will gain access to users’ financial information. It’s already failed to keep other personal data safe, and the idea that it will now have access to users’ banking or other relevant monetary data is a bit scary.
It’s hard to say if Facebook Coin will be a big deal, especially in the early stages. At press time, many retailers don’t accept cryptocurrencies as methods of payment, whether they’re standard or stable coins, though this could potentially change in the coming months with the introduction of enterprises like Flexa. Either way, users should probably think twice about their privacy before engaging in any activity that could potentially put that privacy at risk.