Facebook is working on a cryptocurrency. However, recent scandals affecting the company make it hard for any sane person to trust GlobalCoin.
Facebook is on a quest to take over the world. What started as a small social interaction project for Harvard students, has grown into a multinational corporation controlling three of the most famous social media networks on Earth.
Facebook is now working to becoming a financial giant with its upcoming cryptocurrency. In three months, the Facebook crypto initiative dubbed Project Libra has moved from a rumour and is now set to be released in Q1 of 2020.
What is Project Libra?
Project Libra has been operational for the past one year. The initiative started as a money transfer service between WhatsApp users. It has now expanded to include e-commerce payments and online shopping on the Facebook platform.
Project Libra has the potential to compete with giants such as PayPal and Apple pay. The social media company has over 2.3 billion monthly active users. Most of these users could end up using the platform’s digital coin
A certain faction of crypto enthusiasts has argued that GlobalCoin will help promote Bitcoin adoption. However, the various scandals that have faced the social media company in the last couple of years are proof that you and everyone else should stay far far away from the Facebook cryptocurrency.
Would You Give Your Money to Someone You Don’t Trust?
An acquaintance who is known for not paying his debts, asks you for a loan. Would you lend such a person money?
Facebook is that acquaintance. Since 2014, Facebook has repeatedly lost the trust of its users. A myriad of scandals involving data security, privacy concerns, and censorship have affected the Silicon Valley giant’s reputation proving that Facebook and your money cannot go together.
Below are several reasons why you should keep away from GlobalCoin.
Plaintext Password Policy
What would you do if you found out that your bank stores your mobile banking passwords in an unencrypted plaintext format that any bank employee can access? Would you trust such a bank again with your money?
Such is the case with Facebook. In March, the social media giant admitted they have been storing over 200 million Facebook passwords in a readable format accessible to all its employees. Internal investigations revealed that over 20,000 Facebook employees accessed account passwords since 2012.
The same company that has failed to protect your password is now asking you to trust them with your money.
Cambridge Analytica Scandal
If Facebook can sell your personal information without your consent, what happens when you trust them with your financial data? Hint: Nothing good.
Instagram Data Breach
Another day, another scandal. This time, the data leak affected millions of Instagram users. In this most recent data breach, the contact information of more than 49 million Instagram accounts was leaked to a public Amazon Web Service database.
Fool me once, shame on you. Fool me twice, shame on me. Facebook has failed to protect its users’ private information more than once. In some instances, it has repeated the same mistakes showing it doesn’t care about your privacy.
Would you trust a company that has consistently shown to have zero care for you with your money? I know I wouldn’t.
Reduced Trust from Potential Employees
The privacy issues affecting Facebook have led to a reduction in the number of people willing to work for the company. Ever since the Cambridge Analytica scandal, the social media company has experienced a 50 percent drop in hiring rates.
Despite company executives coming out to explain that the issue had been fixed, potential employees still do not trust them. If individuals seasoned in technology are distrustful of Facebook, how are we, regular people, going to trust the social media giant?
Facebook Censorship Policy
Blockchain and cryptocurrencies were created to work in a censorship-resistant nature. In a perfectly decentralised system, no one has the power to freeze or stop a transaction.
Facebook, however, does not promise this censorship resistant ecosystem. In the past, Facebook has banned the accounts of several individuals who violated the company’s policy on promoting violence.
Although these bans were just and fair, such censorship proves that Facebook can and will prevent you from using your crypto assets, if it does not share the same views as you.
Facebook Benefits from Resisting Decentralization
Who do you think would be the biggest losers if cryptocurrencies and blockchain become mainstream? Hint: Banks and platforms dealing with large amounts of personal data.
Banks make billions in profits from facilitating transactions. Facebook has made billions by selling private user data. Cryptocurrencies and blockchain offer an alternative solution to the likes of Facebook and banks.
The use of cryptocurrencies will result in better protection of user data, censorship-free information, and financial inclusion for the unbanked.
However, GlobalCoin seeks to put Facebook ahead of the curve. By introducing a centralised stablecoin, Facebook is going against the most basic feature of cryptocurrencies–decentralisation.
A Facebook cryptocurrency may seem like a cause for celebration, but it may be a way for the platform to resist cryptocurrencies from the inside.
Kind of like what the Greeks did to defeat Troy.
GlobalCoin – Final Thoughts
Project Libra would have been an awesome initiative. However, Facebook’s dark history with data security and censorship have tainted the cryptocurrency even before its launch.
If you are looking for a digital currency with oppressive censorship and poor security, then, GlobalCoin is your kind of cryptocurrency.
If not, avoid GlobalCoin like the plague.