Facebook is a company that doesn’t exactly have the public’s trust right now. Mark Zuckerberg recently went to trial over the fact that Congress believed Facebook to be auctioning off our private data to companies. Facebook is a web-based app that is integrated into all of our lives. We log into it daily to talk to our friends and family. There have been other elements of Facebook that have been developed to keep us hooked on the platform. However, finance expert Saleh Stevens believes that nothing is as dangerous as Facebook creating its own currency.
Understanding Facebook’s Desire to Expand
Cryptocurrency is a type of currency that can be used online. It is not hindered by region and can be used by most major retailers online. However, Facebook has decided that it wants to enter the cryptocurrency game. It has been reported that Facebook is beginning to develop its own Libra cryptocurrency. This new currency would be used by over a billion people around the world. While the intentions may be good, there may be other problems that will arise if we end up accepting this new form of currency.
The Issues With Facebook’s Cryptocurrency
The main problem that comes to mind whenever we think about this issue is control. Big tech companies have been working diligently to free us away from government control. However, the problem lies in the fine print. Saleh Stevens believes that these large tech companies can then subjugate the individuals who use their cryptocurrency to do as they please. Though government intervention is a hard pill to swallow, nothing is as bad as a bunch of tech companies doing what they want without regulation.
Cryptocurrency Isn’t Regulated
Bitcoin is currently not regulated by any government system. While this is something that many cryptocurrency enthusiasts enjoy, it can become a major problem if it goes mainstream. A cryptocurrency that is not being regulated can cause major fluctuations in the online market. This can hurt individuals that end up putting all of their investments into a brand new cryptocurrency. However, this isn’t even the worst part of it all.
Tech Companies and The Search for Power
As mentioned previously, tech companies can reshape the environment around them as they see fit if this cryptocurrency goes live. Big tech companies can get away with crimes since they aren’t being regulated. They will not face accountability for their actions either. Libra, the cryptocurrency being developed by Facebook, is being handled by a currency organization known as Calibra. This is a subsidiary group that Facebook is creating to help regulate its own currency. However, this can present major problems on its own. How can we trust Facebook to regulate something when it only has its own interests in mind?
A Hard Sell
While we may fear a financial apocalypse, many people are still skeptical of cryptocurrency. Bitcoin is only used by 7.1 million people around the world. This is a considerably small number when compared to the general population. We can only trust the skepticism of the general population to reject Libra and not use the cryptocurrency being provided by Facebook. However, currencies do take time to develop. We hope that people can see the dangers of an unregulated currency and how it can only benefit big tech companies.