The wave of criticism
In the past 2 days, in the meeting of the Financial Services Commission of the US Congress, Facebook’s Libra currency became the focus of attracting attention and receiving many objections.
Commission Chairman Maxine Waters said that if Facebook releases Libra, the company will own "tremendous power to break" the management system of central banks and governments.
Accordingly, the committee and other committees of the National assembly are working to set up regulatory barriers to temporarily prevent and control Facebook’s Libra release process, until all issues are available. Clear remedies.
Facing this resolute attitude, David Marcus, Facebook’s senior project manager for Libra, said the company would not risk going ahead with the e-money project until managers and government felt. satisfied.
Not only the Financial Services Commission, many members of the US Congress from both leading parties raised many questions about Facebook’s security policies and enforcement practices, including mistakes related to scandals. disclosing user information, resulting in the Federal Trade Commission penalizing the US $ 5 billion company.
Meanwhile, US President Donald Trump has a clear "hostile" voice when posting a status line on his social networking site confirming he is "not a fan" of electronic money in general and Libra said. private. According to Mr. Trump, Libra is not sustainable and reliable.
In the same view, Jerome Powell, chairman of the US Federal Reserve, shared in Congress that he had serious concerns about electronic money, while Finance Minister Steven Mnuchin described Libra as a national security issue, when the currency opens the door to money laundering, along with many other illegal acts.
Other challenges
Similar to other electronic currencies, Libra must address security issues and user information security policies. However, one of the biggest challenges is being able to succeed in the lives of users.
Electronic currencies like Bitcoin have tried and failed to become an acceptable means of payment. Even a stable currency like Tether is only used by traders as a temporary tool at times of great market volatility.
Besides, there is no shortage of Libra rivals in the market. Facebook introduced its Libra money service by sending money through texting. But this is how many of the older companies used it like Alphabet (parent company of Google), Apple Cash, Venmo (PayPal Holdings Inc) and Circle ...
Not to mention, Facebook is also targeting the market in developing countries, similar to many other large businesses and in fact, these services are already here.
Facebook’s revenue has been declining in recent years and the company needs to find new ways to diversify its revenue sources outside of advertising activities. Libra can open up opportunities to bring in new cash flows in payment and trade activities. However, the new road is always thorny and the possibility of Libra being able to withstand the storm still needs more time to respond.
