Facebook’s Libra Cryptocurrency is Already Facing Some Challenges
The entire internet was bombarded with news about the recently announced Facebook’s Libra cryptocurrency. Despite the positive impact that Facebook hoped the digital coin will have, the announcement has received a chilly response. Regulators, nonprofits, and politicians have all expressed their concerns regarding the ambitious project of Facebook.
The Libra cryptocurrency project has been initiated by the Libra Association which has been co-founded by the social network Facebook. The purpose of the digital coin is to be the monetary authority for cryptocurrency, aiming to be used by almost 1.7 billion adults who don’t have a bank account. It has been designed with the purpose to serve as a cheap and easy method of transferring money online.
Yet, despite the Libra’s cryptocurrency showy announcement, it seems that many people from the public show their concerns or lack of interest. The digital cryptocurrency has already started to face some challenges which could result in a scenario that its creators never thought about.
Delayed release date
Facebook’s Libra cryptocurrency has been announced to be released in the first half of the next year. However, some policy experts tend to have doubts regarding the cryptocurrency’s release to take place as planned.
Angela Walch, a researcher from the University College London’s Center for Blockchain Technologies, believes that the chances for the Libra digital cryptocurrency to receive regulatory approval in time for its announced release date are very small. She explains that the concept behind the new digital cryptocurrency is very complex and could have global scale consequences. Thus, before Libra will receive regulatory approval, all specialists must take their time to analyze the effects the cryptocurrency could have.
As mentioned before, Facebook’s Libra cryptocurrency faces skepticism politicians, nonprofits, and regulators. However, a series of scams can make things even harder for the launch of the digital coin.
A multitude of fake accounts and scams are already online trying to sell Libra on Facebook, Instagram, and other social media networks such as YouTube, something very similar to what is happening with fake online brokers, say the experts from InvestinGoal. Facebook announced that the social network does its best to remove any scam, post, page, or ad that violates its policies. However, seeing that scams regarding the Libra cryptocurrency are able to take place right on the social network’s own platform, the public is once again drawn to skepticism regarding the digital coin.
Low level of interest
According to a recent study, another challenge that Facebook’s Libra is facing these days is a low level of interest from adults. Since its announcement, the internet has been filled with negative speculations and concerns regarding the functionality and the consequences the digital coin could have. Thus, according to the study conducted by CivicScience, only 5% of 1,799 US adults showed a little interest at all in Facebook’s cryptocurrency. A percentage of 86 expressed that US adults are not interested at all in the digital coin.
Perhaps one of the reasons might be the fact that Facebook has a bad rap among its users when it comes to privacy protection. The social network has faced many cyberattacks in the past which made its users doubt its capability of keeping their data safe. Consequently, a percentage of 77 said that they lack trust in the social network Facebook.