News has been well rounded about Facebook’s GlobalCoin project, which is known as Project Libra. This project may, unfortunately, be faced with significant hurdles as the Pioneer social media company, Facebook works toward its prospective launch.
Facebook is gearing up to reveal its new cryptocurrency before this month ends according to prior reports and definitely the world is anticipating it. But despite that, a source with knowledge of Facebook’s operations said the project’s software has a long way to go until it can be used. The delay has been attributed to the fact that blockchain industry incumbents are being reluctant to work on a project that doesn’t appear to have the hallmarks of a true cryptocurrency, according to some sources. A particular source ‘estimated that early 2020 would be a more realistic timeframe for testing, so any imminent announcements would merely be forward-looking plans.’
A rift between various partners from the blockchain industry has been created; some partners have been reluctant to work on a project that offers users little control over their digital identities. Knowledgeable sources in different conversations told a reliable reporting website that Facebook’s plan to connect users’ financial information to their personal Facebook profiles has been confirmed. Such data would likely be under Facebook’s control, hosted in company databases and is a major cause for concern. ‘There are even talks about integrating with external payment processors like Mastercard, which the Wall Street Journal reported has signed on to help finance the GlobalCoin project. ’ Facebook declined to comment in this regard.
Maya Zehavi, a Blockchain consultant revealed in an interview her concern that the GlobalCoin consortium with Visa, Mastercard, PayPal, and Facebook could create a system with limited accountability yet ample power to exclude individual users from commerce. ‘Plus, there’s reportedly a $10 million minimum charge for prospective GlobalCoin node operators.’
Zehavi said, “They are creating an anti-competitive moat,” and added “It creates a silo of data rails without any guarantees about data sharing among the different participants, and the computation being done to access the services. Meaning some computation being done could kick you out of Uber, Facebook and Shopify, if you become a risk-management issue.” Alipay, which allows digital payments across social platforms but is also associated with Chinese government surveillance, has been used to compare GlobalCoin by some other sources. The fact referenced now infers that Facebook’s broader effort has political lobbying hidden in plain sight.
Reportedly, Facebook entered fruitless talks with startups Tendermint and Stellar, and then even expressed an interest in acquiring MobileCoin, the startup advised by Signal creator Moxie Marlinspike. In the absence of these above-mentioned teams who have declined to comment, Facebook acquired the blockchain startup Chainspace, with a keen eye on its proprietary consensus algorithm. One source said, Facebook has hired a team with several dozen cryptocurrency experts with annual compensation packages worth several million dollars each and this in addition to others can easily be tagged as aggressive recruiting. The fact that this could be in a bid to match up to rare skill sets in Silicon Valley is notable.
In addition, news has it that Facebook is hell-bent on locking down partnerships with global brands such as Uber, which may someday accept GlobalCoin. Considering that the majority of Facebook’s over 2 billion monthly active users live outside the United States, partnerships such as this are tantamount to branding this cryptocurrency as a global asset rather than an American fintech initiative. These information and more have become a threat to the envisaged launch for this month,
Facebook’s primary project may be a big addition to the adoption of cryptocurrency but the measures, tactics, and strategies they are carrying out force one to stop and look at the bigger picture to ensure there is no foul play. This depicts the cause of the derailed partnerships we have heard of.
Credits- Leigh CuenJOIN OUR COMMUNITY