When Facebook announced its grand cryptocurrency idea on Tuesday, the rebellious nature of crypto-coins — decentralized, anonymous, not backed by a government — was decidedly missing. Facebook has a highly sophisticated way of identifying users, said its currency would be back by real money, and “Libra” seems anything but libertarian.
The currency does, however, open up tremendous opportunity for the social media giant: Sellers will be many clicks closers to buyers than before using Facebook-bucks. Users won’t ever have to leave the platform, as the currency will continue to close the loop on Facebook’s eco-system, And Facebook will gain both data and potentially transaction fees from this new creation. The well established Bitcoin is already a cryptocurrency that is being accepted by an expanding number of businesses and organisations, some of which can be found at Coinsspent.com.
You can read Facebook’s views on this issue by downloading the Libra White Paper.
Avivah Litan, a Garnter analyst who specializes in Blockchain applications, had this to say about Facebook’s new product:
“It does go against the ethos of no central authority, non-sovereign currency. It replaces central authority with Calibra Network authority .. for now until they become a public network as they say they plan to,” Litan said.
“What benefits does a cryptocurrency provide to Facebook? “More ad revenue since there will be more conversion of consumers who view ads to buyers â€“ as it will be easier for them to buy the goods/services without having to type in their credit card as they have to do on most mobile interfaces.
“Promises that they will protect consumer privacy/data unless consumers opt in to share it (and consumers will likely NOT OPT IN so now they appear consumer privacy friendly while they are gathering the most useful information out there for advertisersâ€¦)
“A more attractive ecommerce marketplace that gains sellers and buyers in growing economies without access to e-money services for transactions. Essentially cryptocurrency available through the Facebook wallet opens the marketplace up to sellers and buyers in growing economies who donâ€™t necessarily have active or any bank accounts. ”
Cryptocurrencies are making headlines around the world, so it’s no surprise that people want to find out more about them. If you’d like to further your knowledge of cryptocurrency then head to Smartoptions.io here for news, trading and investment information.