Facebook’s Libra Coin And The “Commitment Issues”
MasterCard and PayPal Backing out of the Promised $10M Investments and more…
Since Facebook announced the idea of launching a digital currency, the Crypto-world has been once again been in world news. Libra, a Stablecoin, by definition, is promising to create and ‘enable a more inclusive global financial system”
The Calibra wallet app launching in 2020 has brought 100’s of exciting partnerships among the various companies committed to invest $10 million each in the Libra Stablecoin Project, so it has full asset backing upon release.
These include but are not limited to;
MasterCard Is Quiet And PayPal “Stood Up” Zuckerberg.
According to Financial Times News Agency, PayPal was a “no show” at the October 3rd, 2019 scheduled meeting of 28 Libra supporters.
CoinTelegraph reports, “The developments come on the back of existing rumors that up to three more of those backers are also considering quitting their roles as future node operators. The Times quoted a person close to PayPal as saying;
“It doesn’t seem that there was a lot of pre-work done with regulators. [Payments] companies don’t want that [regulatory scrutiny] to bleed into their businesses.”
David Marcus is leading the Libra project. He was noted on October 1st for having a heated Twitter conversation with the Wall Street Journal (WSJ) after they made claims of MasterCard pulling out as an investor.
Marcus did not deny the accusation, he merely stated the official group of Libra partners
“will be formalized in weeks to come.”
Facebook Staff May Have Concerns, Too.
On October 1st The Verge discovered and published text/audio from a Facebook meeting held by Mark Zuckerberg. The young CEO was once again in the spotlight answering hard questions.
During two meetings this summer, Zuckerberg ignited FB employees to stand against critics, competitors, and personally, Sen. Elizabeth Warren, among others.
At the meeting Thursday, an employee asks Mark Zuckerberg about FB’s ongoing FCC investigation and brings up the concern about Facebook’s corporation being broken up. In a long-winded reply Mark says,
“… I think that the direction of the discussion is concerning. I at least believe, I think, there are real issues. I don’t think that the antitrust remedies are going to solve them. But I understand that if we don’t help address those issues and help put in place a regulatory framework where people feel like there’s real accountability, and the government can govern our sector, then yeah, people are just going to keep on getting angrier and angrier. And they’re going to demand more extreme measures, and, eventually, people just say, “Screw it, take a hammer to the whole thing.” And that’s when the rule of law comes in…”
Mark Zuckerberg Is No ‘Stranger To Danger’
It was the Federal Trade Commission put that ‘banhammer’ down Mark was complaining about.
The FTC’s vision states they’re
“Protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity.”
It seems they were somewhat proud of sending the mega social media giant a large fine. FTC shared;
“The FTC’s $5 billion civil penalty against Facebook for violations of an earlier FTC order is record-breaking and history-making. In addition, the settlement requires Facebook to implement changes to its privacy practices, its corporate structure, and the role of CEO Mark Zuckerberg that are seismic in scope. Simply put, when it comes to the business of consumer privacy, it’s no longer business as usual at Facebook.” Source
Is Facebook moving forward with their launch of a multi pegged and backed fiat collateralized Stablecoin or will the project launch without a token?
Facebook is discussing both.
This author feels as if we need to go back and work on some of those privacy issues before we attempt to integrate a global economy, but what does this nurse know?
I’m interested to know your thoughts.
Need To Know More About Stablecoins?
I’ve written a lot about them…
Complete & Simple Guide to Understanding StableCoins here.
Asset-Collateralized coins, also known as, Fiat-Collateralized StableCoins found in my publication here.
I also covered Crypto-Collateralized StableCoins. That article can be viewed here.
Then switched things up a bit and visited the only Non-Collateralized StableCoin Category, Seigniorage Supply (Algorithmic) StableCoin Model. Enjoy the description of the futuristic currency model here.
Next? A simple to understand category among an Asset-Collateralized group; Metal-Collateralized Stablecoins found here, with a long list of promising projects.
Lastly, combining asset-backed and non-collateralized crypto’s, we have our Hybrid StableCoin Model Category. View this here.
If you’d like to learn how to “get ahead” with your newfound StableCoin knowledge, visit my very last part of my Ebook here. “A Guide to Using Stablecoins to Increase & Protect Your Assets.”
Tell me what you think.
- What am I missing?
- What would you add?
- What’s your personal opinion on StableCoins?
I’d love to professionally discuss, collaborate and connect with you all. Would love any feedback, positive and negative; as I’m only here to improve and educate myself/others.