Facebook is diving into the global cryptocurrency market, but many aren’t ready for the tech giant to have more power.
The company’s new offering, called Libra, would use its worldwide network but still be linked to fiat currency issued by governments. Facebook has been working on the program for at least a year, with its former head of Facebook Messenger heading up the blockchain team.
The blockchain currency is the most mainstream offering of a technology that has taken the world by storm and has made lots of money for some early adopters. However, Facebook’s offering won’t create a gold rush (in theory), because its value is tied to government-issued money already in the marketplace.
Some are leery about Facebook’s new product, which they say promises to give the tech giant unprecedented power in the global marketplace. Plus, many haven’t moved on from Facebook’s recent data-use scandals.
Can Facebook convince government regulators and everyday consumers that its currency is a safe bet?