Facebook cryptocurrency .. Was it "a monument of the imagination of Fehwa"?

While Mark Zuckerberg practiced his favorite hobby of launching a feature without much thought, he was surprised, as we are used to, to the existence of security flaws or breaches of user privacy. This time, the same is true of the default currency, Libra, which Zuckerberg was hoping to reach users and start trading, and then to the lawmakers' questions, but his trick or aspirations did not really work. The US Congress opened a fierce front before the Liberia Union, which recently witnessed the withdrawal of some names that expressed its initial approval, became an important question: does the Facebook plan fail to launch its currency and dominate the global economy?

The indignation of the senior technical

It is very easy for some big names to conceal their anxiety behind a barrage of negative statements against Libra. around the world. But this, the interpretation of rejection statements by technology companies as an expression of a technical deficit, cannot be applied, for example, to Tim Cook, Apple's chief executive. In an interview at the beginning of October 2019, Cook said that what Facebook intends to do by creating a virtual crypto is absolutely unnatural and unreliable.Currencies should be in the hands of states, not in the hands of private companies because this It would only give it more power, without any technical precedence, he said.

Given Calibra, the digital wallet Facebook intends to create, it doesn't pose a lot of risk. What Apple is doing is similar to this idea. It offers Apple Pay for e-payment and recently launched a card. Apple Credit Card in collaboration with Goldman Sachs Group, which specializes in investments and finance, in addition to the Master Card, which means that the balance used in the Apple Wallet has a real charge in a bank. What (2).

This makes other declarations of billionaire Mark Cuban understandable and acceptable when he says that Facebook's step in creating a new digital currency is a big mistake, because in some countries where there are no strict laws or face Stability Out-of-government economic control will be very bad (3).

These simple examples of opposition are due to Facebook's desire to be completely independent of any current currency. This, of course, worries any government.

Official concern

In fact, the US Congress did not move against Facebook until the social network changed the political landscape in the country, where the blue company was covered by a wide range of scandals and leaks that opened the doors to external interference in US policy. For this reason, members of Congress did not want to go after Facebook again, and decided to run the scene themselves by questioning David Marcus, who is in charge of Facebook's cryptocurrencies, who had to answer many technical and legal questions.

Marcus's answers were clear, and besides the usual evasion of Facebook officials by using phrases such as “this question is not my usual job” or “this is not an answer now,” Marcus said Facebook is seeking approval from international financial bodies away. In accordance with the Swiss Protocol on Financial Matters, which, once it meets certain conditions, Facebook obtains approval to use Libra and later Calibera.

The fading of the United States soon followed, however, with stinging remarks by France, Germany, and the European Union in general.The EU antitrust body opened an immediate investigation into the questioning of Libra members to curb any illegal practices (5). Officials in France have abandoned diplomacy and openly said that France would withhold Libera immediately if it did not get clear answers about everything about currency. , And to the graft (6).

The source of the EU's concerns lies in Facebook itself, specifically in the technical disasters that have occurred during the past few years that have made the privacy of users in the wind, if complete vision, it will get accurate details about the user's shopping, without forgetting to facilitate washing operations Money. Therefore, Facebook's lack of a clear plan to reduce these problematic issues will not give it any approval to act, at least in the EU.

Withdrawal of Members

Tim Cook's remarks were not the biggest event, not even the reactions of lawmakers in different countries. What PayPal, which was on the list of the first 30 companies in the Libra Union, was the biggest shock for everyone. It announced its withdrawal abruptly, stressing that they would focus on their current tasks specializing in the field of electronic payment to return in the future to contribute to the "Libra" if they find the possibility (7).

PayPal officials have ended their relationship with Libra, which has not been formally launched.Union members are supposed to sign the first formal agreement on October 10, 2019. But Facebook's response, which ignored that cordiality, has shown some fear. Everyone, aside, will not accept any opinion other than the opinion of Facebook.

Facebook officials said the creation of a cryptocurrency like Libra requires boldness and ambition, as well as a lot of flexibility to correct things and achieve that vision, which will take a lot of time and effort alike, because changing the global financial system is never easy, a challenge not Only a handful of companies are empowered (7).

Facebook's statements have been challenging, even if PayPal is not named by name.One way or another, the company did not care, because the alternatives are many, especially since the main goal is to reach more than 100 members of the federation, which currently has about 28 names. Al Kelly, the CEO of Visa, escapes the direct answer about the company's intention to leave the union. He said that Visa has signed a preliminary agreement showing its intentions to join the union, but this is not final. The moment for all members, because the official signature has not been done, and everything can change (9).

The statements were just simple maneuvers to keep the exit door open, the door that apparently was large and "room for camel". It was only a few days until Visa announced its official withdrawal, followed by both MasterCard and eBay. In addition to the Stripe and Mercado Pago, they also formally withdrew, confirming their support for the project and at the same time opening the door for return, as they were working to reassess the opportunity.

Zuckerberg did not realize that there was a red line that was difficult to cross. Human rights and user privacy could be skipped in some countries. You see the light on time. At the same time, it will show how serious and committed Facebook is to playing transparently with all parties. Dangerous questions specifically affect humans. A new face of Zuckerberg will be unveiled, and Libra will be merely a new attempt to digitize people and keep them at the mercy of algorithms.