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On June 18, 2019, [[Maxine Waters]], Chairperson of the [[United States House Committee on Financial Services]] Committee asked Facebook to halt their plan to the development and launching of Libra citing a list of recent scandals. She said, "The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers and the economy. Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies".<ref>{{cite news |last=Wong |first=Queenie |url=https://www.cnet.com/news/us-lawmaker-wants-facebook-to-halt-its-libra-cryptocurrency-project/ |title=US lawmaker wants Facebook to halt its Libra cryptocurrency project |work=[[CNET]] |date=2019-06-18 |deadurl=no |archiveurl=https://web.archive.org/web/20190619122342/https://www.cnet.com/news/us-lawmaker-wants-facebook-to-halt-its-libra-cryptocurrency-project/ |archivedate=2019-06-19 |accessdate=2019-06-19 }}</ref>
On June 18, 2019, [[Maxine Waters]], Chairperson of the [[United States House Committee on Financial Services]] Committee asked Facebook to halt their plan to the development and launching of Libra citing a list of recent scandals. She said, "The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers and the economy. Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies".<ref>{{cite news |last=Wong |first=Queenie |url=https://www.cnet.com/news/us-lawmaker-wants-facebook-to-halt-its-libra-cryptocurrency-project/ |title=US lawmaker wants Facebook to halt its Libra cryptocurrency project |work=[[CNET]] |date=2019-06-18 |deadurl=no |archiveurl=https://web.archive.org/web/20190619122342/https://www.cnet.com/news/us-lawmaker-wants-facebook-to-halt-its-libra-cryptocurrency-project/ |archivedate=2019-06-19 |accessdate=2019-06-19 }}</ref>


===Privacy concerns===
==Privacy concerns==


Industry observers have speculated how Libra will provide privacy to its users.<ref name=Fortune2019-06-18/> According to ''[[Fortune (magazine)|Fortune]]'', a Facebook subsidiary called Calibra will manage Libra, and Facebook executives have promised it will not share account holder's purchase information without authorization.<ref name=marketwatch2019-06-19/> However, ''Fortune'' also reports that the system will include a friend-finder search function, and the use of this function will constitute permission for Calibra to combine the account holder's transaction history with their Facebook account.
Industry observers have speculated how Libra will provide privacy to its users.<ref name=Fortune2019-06-18/> According to ''[[Fortune (magazine)|Fortune]]'', a Facebook subsidiary called Calibra will manage Libra, and Facebook executives have promised it will not share account holder's purchase information without authorization.<ref name=marketwatch2019-06-19/> However, ''Fortune'' also reports that the system will include a friend-finder search function, and the use of this function will constitute permission for Calibra to combine the account holder's transaction history with their Facebook account.


''Fortune'' reports that Facebook asserts the Libra system will use blockchain technology for recording transactions, like [[Bitcoin]].<ref name=Fortune2019-06-18B/> Unlike Bitcoin, only trusted institutions within the Libra Association will be able to run nodes.
''Fortune'' reports that Facebook asserts the Libra system will use blockchain technology for recording transactions, like [[Bitcoin]].<ref name=Fortune2019-06-18B/> Unlike Bitcoin, only trusted institutions within the Libra Association will be able to run nodes.

==Implementation==

Partners within the [[Libra Foundation]] will create new Libra currency units based on demand.<ref name=Fortune2019-06-18B/> Libra currency units will be retired, when they are redeemed for regular currency.


==References==
==References==

Revision as of 15:10, 19 June 2019

Libra
Denominations
Symbol≋
Development
White paperLibra whitepaper
Code repositoryhttps://github.com/libra/libra
Development statusAnnounced
Written inRust
Developer(s)The Libra Association, Facebook
Source modelOpen source
LicenseApache License[1]
Website
Websitelibra.org

Libra (previously known as GlobalCoin or Facebook Coin[2]) is American social media conglomerate Facebook's proposed virtual currency, referred to as a cryptocurrency.

Currency

News of the currency first leaked in May,[3] with more revelations in June,[4][5][6] and it was formally announced on June 18, 2019[7][8] along with the release of an associated whitepaper outlining the project's infrastructure and goals.[9] A first version is projected to be released in 2020.[10] Libra will be backed by financial assets such as a basket of currencies,[11] and US Treasury securities in an attempt to avoid volatility.[12] It will not rely on cryptocurrency mining.[13]

Libra Association

Facebook had previously established the Libra Association to oversee the currency, founded by 28 members:[14]

Facebook has announced that each of the partners will inject an initial $10 million, USD, so Libra is backed by solid currency, on the day it opens.[15]

Reception

The project has faced criticism[16][17] and opposition from central banks.[18] The use of a cryptocurrency and blockchain for the implementation has been questioned.[13]

On June 18, 2019, Maxine Waters, Chairperson of the United States House Committee on Financial Services Committee asked Facebook to halt their plan to the development and launching of Libra citing a list of recent scandals. She said, "The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers and the economy. Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies".[19]

Privacy concerns

Industry observers have speculated how Libra will provide privacy to its users.[20] According to Fortune, a Facebook subsidiary called Calibra will manage Libra, and Facebook executives have promised it will not share account holder's purchase information without authorization.[21] However, Fortune also reports that the system will include a friend-finder search function, and the use of this function will constitute permission for Calibra to combine the account holder's transaction history with their Facebook account.

Fortune reports that Facebook asserts the Libra system will use blockchain technology for recording transactions, like Bitcoin.[15] Unlike Bitcoin, only trusted institutions within the Libra Association will be able to run nodes.

Implementation

Partners within the Libra Foundation will create new Libra currency units based on demand.[15] Libra currency units will be retired, when they are redeemed for regular currency.

References

  1. ^ "Libra Software License". Github.
  2. ^ Social Media Monopolies and Cryptocurrencies: Facebook's Proposed Coin. Cybersecurity, Privacy, & Networks eJournal. Social Science Research Network. (SSRN). Accessed June 19 2019.
  3. ^ Andriotis, AnnaMaria; Hoffman, Liz; Rudegeair, Peter; Horwitz, Jeff (2 May 2019). "Facebook Building Cryptocurrency-Based Payments System". The Wall Street Journal. Retrieved 18 June 2019. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  4. ^ Nuttall, Chris (14 June 2019). "Facebook's crucial crypto coin play". Financial Times. Retrieved 18 June 2019. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  5. ^ Andriotis, AnnaMaria; Rudegeair, Peter; Hoffman, Liz. "Facebook's New Cryptocurrency, Libra, Gets Big Backers". The Wall Street Journal. Retrieved 18 June 2019. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  6. ^ Facebook to launch cryptocurrency backed by Uber, PayPal Mastercard and Visa TechAhead Inc. Accessed June 17 2019.
  7. ^ Isaac, Mike; Popper, Nathaniel (18 June 2019). "Facebook Plans Global Financial System Based on Cryptocurrency". The New York Times. Retrieved 18 June 2019. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  8. ^ Constine, Josh (18 June 2019). "Facebook announces Libra cryptocurrency: All you need to know". TechCrunch. Retrieved 19 June 2019. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  9. ^ "Libra White Paper | Blockchain, Association, Reserve". libra.org.
  10. ^ "Facebook Unveils Libra Cryptocurrency, Sets Launch For 2020". NPR.org. Retrieved 2019-06-19.
  11. ^ "Facebook's Libra currency draws instant response from regulators". Financial Times. June 18, 2019. {{cite news}}: Cite uses deprecated parameter |authors= (help)
  12. ^ Duffy, Clare. "Facebook wants to make cryptocurrency mainstream. Here's how". CNN. CNN. Retrieved 18 June 2019.
  13. ^ a b c Cellan-Jones, Rory (June 18, 2019). "Why Facebook wants to be money's future" – via www.bbc.co.uk.
  14. ^ "Libra Association | A not-for-profit organization". libra.org.
  15. ^ a b c Jeff John Roberts (2019-06-18). "Facebook Announces Project Libra, Its Wildly Ambitious Plan to Bring Cryptocurrency to the Masses". Fortune magazine. Retrieved 2019-06-19. The Libra blockchain—like other blockchains—will provide a tamper-proof record of transactions on the network. But, unlike Bitcoin and other public blockchains, only authorized bodies—in this case, foundation members—will be allowed to run a node. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  16. ^ Kaminska, Izabella (18 June 2019). "Alphaville's Libra cheat sheet". Financial Times. Retrieved 18 June 2019. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  17. ^ Kaminska, Izabella (18 June 2019). "Zuckerberg: The man who would be monetary king". The Financial Times. Retrieved 18 June 2019. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  18. ^ Marsh, Alastair (18 June 2019). "France Calls for Central Bank Review of Facebook Token". Bloomberg News. Retrieved 18 June 2019. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  19. ^ Wong, Queenie (2019-06-18). "US lawmaker wants Facebook to halt its Libra cryptocurrency project". CNET. Archived from the original on 2019-06-19. Retrieved 2019-06-19. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  20. ^ Jeff John Roberts (2019-06-18). "Facebook's Project Libra: 5 Things to Know About the Cryptocurrency". Fortune magazine. Archived from the original on 2019-06-18. Retrieved 2019-06-19. So, in theory, only Calibra will have a record of your transactions. But many Calibra users may decide to use its integrated Facebook friend-finding feature, and if they do, their data will be combined. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  21. ^ Jacob Passy (2019-06-19). "Why Facebook's Libra coin could become a big pain in your wallet". Market Watch. Retrieved 2019-06-19. Libra will be a "stablecoin," linked to the value of other currencies, unlike other cryptocurrencies like bitcoin BTC, -4.27% Consumers who use Facebook's Messenger service, WhatsApp or a stand-alone app will be able to access Libra through a digital wallet managed by new Facebook subsidiary Calibra. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
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