{"id":8260,"date":"2019-10-13T08:11:30","date_gmt":"2019-10-13T03:11:30","guid":{"rendered":"http:\/\/umang.pk\/2019\/10\/facebooks-libra-currency-battered-by-defections-pushback\/"},"modified":"2019-10-13T08:11:30","modified_gmt":"2019-10-13T03:11:30","slug":"facebooks-libra-currency-battered-by-defections-pushback","status":"publish","type":"post","link":"https:\/\/umang.pk\/en_us\/2019\/10\/13\/facebooks-libra-currency-battered-by-defections-pushback\/","title":{"rendered":"Facebook’s Libra currency battered by defections, pushback"},"content":{"rendered":"
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On Friday, Visa and MasterCard announced their departure from the Libra project, just like e-commerce giant eBay and payment startup stripe.<\/h3>\n<\/p><\/div>\n
\n \"On
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On June 21, 2019, in this picture picture, a small toy picture is shown in the virtual currency display in front of the Libra logo.
\n(Reuters)
\n <\/figcaption><\/figure>\n

Facebook faces a difficult road ahead of Libra, but the escape of famous partners will still not end the digital currency.<\/p>\n

On Friday, Visa and MasterCard announced that they're starting from the Libra project, just like e-commerce company eBay and payment startup Stripe. Last week, PayPal became the first major company to drop out of Libra. Exodus emerges, not to mention a stronger regulatory pushback than expected for Libra in the United States and elsewhere.<\/p>\n

"This is a big frustration for them, but it's not the end," said Gartner analyst Avivah Litan.<\/p>\n

Facebook CEO Mark Zuckerberg will be in Congress later this month to talk about the company's plans for Libra. California Democrat Member Maxine Waters, who leads Zuckerberg's testimony on 23 October, called Libra a new Swiss-based financial system that could potentially require taxpayer bailouts too large to fail.<\/p>\n

Libra's supporters say millions of people who don't have access to a bank account can initiate online purchases and reduce the cost of sending money across borders. It's easy to see how attractive alternatives like Libra are to people in countries with hyperinflation like Venezuela or Zimbabwe.<\/p>\n

But Facebook is already scrutinizing its poor record of privacy and its dominance in social media, messaging and related businesses. Will people believe it to make a new global currency? Libra also raises new questions about social networks. Given the fact that cryptocurrency is now a bit regulated, how will financial regulators oversee Facebook's plans? And how much personal data will this give to the social media giant anyway?<\/p>\n

Litan said Facebook could easily launch Libra in a country that still doesn't have a pushback. She also dismissed the idea that Facebook needed a partner company like MasterCard or Visa to keep Libra rich.<\/p>\n

"The only reason the company wants it is because it looks good," she said. "This is not a democratic blockchain. It was always run by Facebook and two financial companies."<\/p>\n

Now, they are not just riding<\/p>\n

"It's important to remember that this is a blockchain. It's the Internet. It can't be stopped."<\/p>\n

Regulatory issues<\/strong><\/p>\n

The financial industry is stricter than in the United States, where Internet companies, especially tech companies, are often offered free rebalancing. Karen Shaw Petrou, a partner at Federal Financial Analytics in Washington, said the companies that make Libra are "rude awakening" if they expect light regulation of the same model.<\/p>\n

She expects to belong to US regulations where Libra was adopted after the 2008 financial crisis. She said that the agency that will oversee the venture depends on the capabilities of the monetary system.<\/p>\n

The US House of Representatives Financial Services Commission wants Facebook to halt plans for new currencies until parliament and regulators can study further.<\/p>\n

In July, the Waters and other commission Democrats sent Facebook a letter requesting Facebook to stop the deal with the currency used for the new monetary system and digital wallet Calibra. The House Democratic Party also threatened legislation that prevented large corporations from entering banks.<\/p>\n

One of the obstacles faced by Facebook and its partners is the possibility that criminals can use it as money laundering and fraud, given the nature of criminals and anonymous Libra and other digital currencies.<\/p>\n

Facebook said it will comply with all existing financial regulations.<\/p>\n

Privacy push back<\/strong><\/p>\n

Facebook is filled with questions about your personal data, especially since the Cambridge Analytica scandal last year.<\/p>\n

This seems to be part of the reason Facebook created a non-profit directors' association to control Libra. It also founded Calibra, a subsidiary that will work on technology separately from the main social media business.<\/p>\n

Forrester analyst Aurelie L & # 39; Hostis said Facebook is still "accessing a lot of financial data." "How are they related to the information and what will they do to protect it?"<\/p>\n

Cryptocurrencies like Libra store all transactions on a widely distributed and encrypted ledger known as blockchain. Libra is designed to view transaction amounts, but trading participants can remain anonymous at least until they transfer the money to the real account.<\/p>\n

Facebook said that people can use Calibra's wallet app to prevent individual transactions from appearing on the blockchain, but Calibra itself will have people's data.<\/p>\n

Calibra said he would not use Facebook data to target Facebook ads. It also said there will be no financial data sharing with Facebook, although there are exceptions that are not fully explained, including the situation where data sharing is "keeping people safe".<\/p>\n

Is Facebook too big?<\/strong><\/p>\n

Congress, the Federal Trade Commission, and the Justice Department are all investigating whether big tech giants like Facebook or Google are too big.<\/p>\n

New York University law professor Eleanor Fox said adding another major business could make Facebook bigger by taking off as Libra intended, but may not take antitrust bans.<\/p>\n

"This is the entry of rooted roots into new fields and can actually reflect an increase in innovation," she said.<\/p>\n

Sarah Miller, vice president of the Open Markets Institute, an advocate for monopoly, is pushing Facebook to launch global cryptocurrency when Facebook is already facing regulatory scrutiny around the world regarding data privacy. Trust is "madness".<\/p>\n

"FTC must be readjusted by Facebook before the company puts its financial information and monetary system at risk," she said.<\/p>\n

Source: AP<\/p>\n<\/p><\/div>\n<\/pre>\n<\/pre>\n

Source Link : https:\/\/www.trtworld.com\/business\/facebook-s-libra-currency-battered-by-defections-pushback-30541?utm_source=other&utm_medium=rss<\/p>","protected":false},"excerpt":{"rendered":"

On Friday, Visa and MasterCard announced their departure from the Libra project, just like e-commerce giant eBay and payment startup stripe. On June 21, 2019, in this picture picture, a small toy picture is shown in the virtual currency display in front of the Libra logo. (Reuters) Facebook faces a difficult road ahead of Libra, […]<\/p>\n","protected":false},"author":1,"featured_media":8261,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8260","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/posts\/8260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/comments?post=8260"}],"version-history":[{"count":0,"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/posts\/8260\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/umang.pk\/en_us\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/media?parent=8260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/categories?post=8260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/tags?post=8260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}