“A simple global currency and financial infrastructure that empowers billions of people.” This is how Facebook unveiled its cryptocurrency, Libra, in June. It was a lofty promise, particularly for those who immediately questioned the so-called blockchain technology that Facebook explained it planned to use. Nevertheless, it seemed like a worthwhile pledge, particularly since it had backing from legitimate, viable, and recognizable financial players like PayPal, Visa, and Mastercard.
Last week, Facebook faced a grilling before both the House and Senate over its Libra cryptocurrency project. The committees did not seem to be fans of Facebook’s plans to create a global currency. Some of their concerns were due to a general distrust of Facebook, but also because it’s hard even for members of Congress to understand what Libra is.
That might be an obstacle to crafting the regulation that Facebook is inviting.
In the company’s opening statements to the Senate Committee on Banking, Housing, and Urban Affairs, Facebook promised that it would not offer the Libra cryptocurrency until “we…
It’s a question you might start hearing more: “Cash, credit, or crypto?”
A recent spate of retail businesses like AT&T and Whole Foods have started accepting payment in Bitcoin. Meanwhile, Facebook announced its new cryptocurrency platform Libra, with the goal of making one global digital currency that everyone can use to make payments and store money. Yet they all struggle to answer a basic question: do consumers really need to pay their bills with cryptocurrencies?
Facebook has been trying to “fix” how we send and receive money for years through products like Facebook Credits and “Send Money to Friends in Messenger.” Enter Libra, an upcoming cryptocurrency that has a couple of modest goals: “Reinvent money. Transform the economy.”
Though you may be unaware, Facebook has been working toward this project for a long time. Earlier attempts at creating a new financial infrastructure, like Facebook Credits, focused on monetizing apps and services that were built on the Facebook platform. At the time, you could buy Facebook Credits, which would then allow you to make purchases in…