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This is Facebook's new currency - which is why "Libra" receives criticism

2019-08-13T21:52:10.503Z

Facebook's new currency "Libra" has in a short time become one of the summer's big snack ice creams. A quick search on Google yields around 283 million hits and Donald Trump has sown the coming currency. But why get that criticism? - It is fearful that private companies will have this power, says IT expert Mattias Beijmo to SVT News.


Facebook is forced to testify before the Senate Banking Committee in a hearing. The reason is the IT giant's upcoming launch of a new digital currency that you control with your mobile.

"It's all about moving money easily"

According to Facebook, around 1.7 billion people will be able to access the new currency and no bank account is needed to join.

- Libra is about developing a safe and cheap way for people to move money around the world, such as sending money to family members in other countries or to shop, says David Marcus, who runs the project.

Facebook believes that Libra is about developing a safe and cheap way for people to move money around the world. Photo: TT

Mattias Beijmo sees some benefits of the Facebook currency:

- As a consumer, you get an easy way to pay with your mobile phone, as you already do with WeChat in China today - but you have to be aware of the risk, that we give away all our data.

"Ridiculous"

- That private companies gain that power, not just with the financial transactions, but with the data, the raw material - it feels completely conceited to take in that idea even with seaweed, says Beijmo.

And he accepts his criticism from several heavy names:

"Libra has several serious problems with regard to integrity, money laundering, consumer protection and financial stability," said Fed chief Jerome Powell, according to the Financial Times.

Donald Trump believes that the coming currency is based on thin air and no host: “We only have a real currency in the US and it is stronger than ever and reliable. It is the most superior currency in the world and will always be so, ”the president tweeted.

The companies want to access the data

According to Mattias Beijmo, Facebook knows that their brand has been cut to the brim.

Mattias Beijmo

- They need a new brand to make billions on our data. Thus, Libra and Calibra are launched, says the digitization expert.

Facebook does not own Libra itself. At present, 28 companies have bought in for $ 10 million each, including major companies such as Mastercard, Visa, Vodafone, PayPal - and Swedish Spotify.

- Those companies want Facebook's knowledge and technology to make sharp AI analyzes, something Facebook is a world leader in. The data we give away is linked to human rights, it tells us our opinions - and when we start using their currency, we give away the connection to our entire digital life. There is nothing more delicious than taking advantage of this data, Beijmo says.

Source: svt

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