Money & Finance

Facebook's Libra Cryptocurrency Price In 2022: Less Buyers Taking Risk Since Release Date

Facebook says the launch of Libra is part of an effort to not only expand digital payments, but also provide unbanked consumers in disadvantaged countries with access to financial services for the first time

YEET MAGAZINE

Nov 10, 2022 • 22 min read

Facebook's Libra Cryptocurrency Price In 2022: Less Buyers Taking Risk Since Release Date -YEET MAGAZINE

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Facebook's cryptocurrency Libra?

Who invented Facebook Libra?

Is Facebook's Libra doomed?

Will Facebook's Libra cryptocurrency become the world currency?

Is Facebook Libra dead?

Will Libra be as valuable as Bitcoin?

Facebook's Libra cryptocurrency : Who Would Be Crazy Enough To Use It In 2022

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By YEET MAGAZINE | Updated 0339 GMT (1239 HKT) November 11, 2022

Facebook has a very bad reputation for many reasons. Can we really trust him when it comes to our finances?

Earlier this year, Facebook (NASDAQ: FB ) had announced plans to launch a new global cryptocurrency called Libra.

The currency is managed by the Libra network, co-founded by several companies in the payments and technology industries, including Mastercard (NYSE: MA ), PayPal and Uber (NYSE: UBER ). To facilitate transactions, Facebook has also created a new subsidiary called Calibra, which will offer digital wallets for Libra.

The subsidiary will only share customer data with Facebook or external parties if it obtains consent, or in "limited cases" where necessary, Facebook added. This could include law enforcement, public safety, or general system functionality.

Will the general public use the Libra cryptocurrency?

Facebook's potential motivations for entering the payments market are more than worrisome.

Facebook has a very bad reputation for many reasons. Will people really trust them with their finances and hand over control of their money to Mark Zuckerberg, especially in light of last year's revelations that UK-based Cambridge Analytica had accessed inappropriate to the data of 87 million Facebook users?

Although we will have to wait and see, I expect the answer to be an emphatic no. Facebook (NASDAQ: FB ) already knows so much about you that the last thing you need to give the social media company is even more unlimited access, this time including your online spending habits.

For many, this risk is not worth taking.

According to a 2018 survey of 1,000 adults by personal finance site MagnifyMoney, 91% of respondents said they wouldn't trust Facebook to handle their payments.

However, the end goal Facebook has in mind for Libra is to integrate digital currency into everyday transactions, such as paying bills, buying a cup of coffee, or paying for public transportation.

This would allow the world's largest social media network, which has more than 2 billion users, to combine a customer's transaction data with their social interactions and possibly sell it to the highest bidder.

It is precisely for this reason that global regulators have already sounded the alarm over Facebook's Libra cryptocurrency, with US lawmakers demanding that Facebook halt development while the concept is investigated.

More sternly, Rep. Maxine Waters said, “Given the company's troubled past, I'm asking Facebook to agree to a moratorium on any further development of a cryptocurrency until Congress and the regulators have the opportunity to look at these issues and take action.”

Prior to Tuesday's announcement, Facebook was already facing a strong backlash over mishandling of user data. These issues have led some government officials to call for Facebook to be forcibly taken down.

Facebook Announces Libra Cryptocurrency and Calibra Digital Wallet (June 2019)

CTO at Greenwitch Productions (2016–present)3y

Are you surprised with the rapid number of big name companies pulling out of the Facebook Libra cryptocoin project or could you see it coming, and why?

Well the merchant lords are under the gun of the king, which mints their coins, so no, I cannot say I am necessarily surprised by this.

The Facebook Libra Cryptocoin Project, made critical mistakes moving forward to promote their idea and the other merchants on the consortium weighed the options of being apart of the Libra Project against incurring the wrath of the sovereign city-state and the royal mint.

Being apart of a 100 member counsel, and asking for permission of the king to create their own money mechanism painted a target on their backs and made them vulnerable to lawful persecution and possible prison time for some conjured artificial new law the SEC pulled out of their ass.

I am not 100% certain that the Facebook Libra Cryptocoin Project is doomed to fail, more likely, it will be adopted by some other amicable national city-state, under another name, with its own people on the counsel.

But I cannot, for the life of me, see any sustainability in their project mechanics under the plethora of better options for operating in the crypto currency realm, starting with Bitcoin, itself and Ethereum, and many other very practical, more secure alt-coins.

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Vladislav Zorov

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former Blockchain Technology Lecturer @ Kingsland UniversityMar 2

Why would Facebook be thinking of giving up its cryptocurrency after the announcement of the project initially known as Libra?

They say they’re having trouble with regulators in various countries.

…and that’s why when you start a new cryptocurrency, you do it anonymously, on some cypherpunks forum :D

I mean, do you see Satoshi Nakamoto complaining about regulators :D

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David Schwartz

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Trading forex, stocks, and options for a very long time3y

Why is Facebook's new cryptocurrency unlikely to be truly decentralized?

Because the cryptocurrency is backed by low-risk investments. Such a cryptocurrency cannot, at least so far as we know, ever be decentralized.

Cryptocurrencies exist and move based on rules in their code. The 21 billion bitcoin limitation, for example, comes from rules in the code. What requirements you must meet to transfer bitcoins from one address to another, again, comes from rules in the code.

Truly decentralized cryptocurrencies have no entities that can demand that the code contain some particular set of rules. If there were some entity that could demand particular code changes, then they would be able to choose or amend all system rules, including how the supply of the cryptocurrency is regulated and what is required to transfer it.

Now, if you have a cryptocurrency that’s value comes from backing in the real world, then whoever controls that backing gets to choose the code rules. For example, say someone suggests that the rules for transferring Libra be changed such that you need explicit permission from Facebook to transfer the currency. They could create code that enforces this rule.

Now, say the vast majority if system users and stakeholders don’t want that rule. They won’t run the code that enforces that rule. As a result, the system will split into two pieces that don’t agree with each other. This is called a “hard fork”. If you hold 10 Libra, you’ll wind up with 10 Libra on each side of that hard fork.

But there only exists on instance of the real-world assets that back that Libra. The entities that control the backing can’t back the Libra on each side of the hard fork without somehow magically doubling their money.

Say they pick the side that requires every transfer to be approved by Facebook to be the side they honor with the backing. That would cause the economic value on the side of the hard fork that doesn’t require Facebook’s permission to transfer to crash.

A system whose system rules can be controlled by a specified party cannot ever be truly decentralized as the rules will ultimately be only what that specified party chooses to tolerate.

You might think that having multiple parties that each control some portion of the backing might make this better. But actually, that makes things worse.

Say just one of those backers is in a jurisdiction that insists that particular accounts be unable to transfer Libra. That backer can’t resist their government, so the system would either have to honor that restriction or lose a fraction of its backing and thus its value. This would mean that multiple jurisdiction could exercise coercive control over the system against the wishes of the vast majority of the real stakeholders.

We know of no way to truly decentralized a cryptocurrency that is backed by real-world assets that have to be in particular jurisdiction and subject to control by particular legal entities. Facebook has given no explanation of what magic they’ve invented, or think they’ve invented, to get around this.

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Jim Euclid

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Former ManagerUpdated 3y

Should I sell bitcoin and buy Libra instead?

No.

Just no.

Not because I am against Libra but because it is a stable coin, meaning that its price never rises.

Never rises.

Not ever.

Bitcoin admittedly is a risky investment, but it has the potential to grow 1,000% over the next 2–3 years (that's a ten fold gain).

Keep your money in the bank if you are averse to risk. At least banks pay you a minimum 0.25% interest on savings, while Libra takes your money and accrues 5–7% interest (large volume short-term money market) for them with your money while you have it on your Facebook account.

If Facebook has 1,000,000,000 active daily users and each user deposited $1.00 into their Libra account, Facebook would have $1,000,000,000,000 earning interest on a daily basis, which amounts to (at 3% interest) $30,000,000 profit per year.

(This is a conservative figure because many users will would hold a lot money more in their Libra wallet.)

Stablecoins are great for hedging against inflation, or transferring currency across the city or across borders, but you should never think of them as a savings account.

And finally, consider this: any government can declare a moritorium on Facebook, halting its use of cryptocurrency. The same can't be said about Bitcoin. Bitcoin has no central operating mechanism. It is ubiquitous as the internet itself.

To shut down Bitcoin, you'd have to shut down the internet.

But having said that, both Bitcoin and Libra could go to zero, so speculate rather than invest.

If you're getting a loan to buy Bitcoin, you're setting yourself up for grief.

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Sonya Floyd

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Ed.S. in Education (college major) & Science/Early Childhood, Experiences in Life (Graduated 1981)2y

How do you get a Libra in 2020?

Daniel, there are plenty well balanced , attractive, alright looks to beautiful Libran women you can approach and make a decision on which Libran, well balanced, little sexy one you want to “LIKE.”

Hey 2020 will be the perfect year to ask women or SignificantO- you are attracted to “When is your birthday?” You can bet on your love making you will find your Libra. You got your soul mate if that’s great and respectable! Enjoy. I am a Libra lady happily and i am well balanced in every way.

I just love it and so grateful being a Libra lady. Read the zodiac information Daniel- it comes verryyyyy-very close to truth my friend! Mrs. Libra!

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Ravelin Technology

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Award-winning fraud detection platformAug 19

Why can authentication be difficult with some digital wallets?

Almost 20% of merchants say that Google Pay is a top vehicle for fraudsters using stolen credit card details. This is because when a customer makes a payment, the merchant receives a token instead of the payment card number. This makes it impossible to identify the card used. Even if you block the offending wallet, fraudsters can move the stolen card to a new wallet. This digital wallet scam is one of the most commonly used right now.

What does fraud look like on digital wallets?

This isn’t helped by the fact that cards are often not fully authenticated when added to a wallet. Ravelin conducted a series of independent checks adding new cards to Apple Pay and Google Pay wallets. They found that only a few banks will verify new cards individually.

As the UK leads the way in Europe for digital payments, fraudsters have found an exciting new playground. Fourthline identifies Greater London as the counterfeit ID hotspot for digital wallet opening attempts in the UK.

Ideally, merchants would be able to identify the individual cards in the wallet and ensure that a customer is who they say they are. Unfortunately, outside of their own platform, they have no control over how a wallet is verified.

What does fraud look like on digital wallets?

Alex Bainbridge

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Part Time Forex & Crypto Trader. Self Employed 3y

Would Facebook’s Calibra Wallet launch worldwide or will it only work within the US?

It’s planned to be worldwide but there are certain countries where it cannot operate such as India and China

Eyal Netanel

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Interested in cryptos2y

Mastercard officially becomes the ninth member to leave the Libra Association. I guess more and more companies will leave the association amid the pressure from governments. What do you think of Libra's future? Is it still bright or bleak?

I have no private information on the subject. All i know is from the open media. And indeed from what i read the future of one of the most promising crypto projects seems bleak. Moreover, this also projects badly on bitcoins chance to get into institutional consensus.

On the other hand i also think that the success of Libra would have been bad for the future of Bitcoin, because it would make it inferior to Libra in the eyes of most people. So in a way, maybe these bad news for Libra are actually good news for Bitcoin.

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Ravelin Technology

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Why can authentication be difficult with some digital wallets?

What does fraud look like on digital wallets?

Zack Haddad

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Life is like a Box of Chocolates3y

Why has Facebook choosen the word 'Libra' for its cryptocurrency Libra?

Probably to mean “Liberty “and freedom from the Banking Elites.. Anyway, the important step here is that #SiliconeValley is coming to compete with the #Banking industry and wants to shake things up with their huge user base. MBA s all over the world will be excited to wrap their heads around what is going on and to make sense of future ramifications.

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Anthony Picco

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Studied at School of Visual Arts3y

Why is the Libra review likely to take longer than 12 months?

What is a “Libra Review?”

Reza Jafery

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How will Facebook's Libra project impact other cryptocurrencies, such as Bitcoin and Ethereum?

The Truth about Facebook’s Cryptocurrency

Is GlobalCoin the Last Stone in Facebooks Infinity Gauntlet?

Facebook’s cryptocurrency will be good for blockchain. It might take some market share from a few smaller coins and even cause a dip or two in Bitcoin if it really gets legs, however, more importantly, it will accelerate mass adoption — something that’s better for all cryptocurrencies.

Facebook has the world’s attention. Everything they do is highly scrutinized, and that scrutiny will lead to clearer regulation in the space, something that will help everyone involved — from retail investors to blockchain developers.

A few days ago, Laura Mccracken

, Facebook’s head of financial services in Northern Europe, announced that they’re releasing the White Paper for their cryptocurrency GlobalCoin (nicknamed Project Libra) on June 18th. While the crypto community seems unsure of how to feel about this new coin, I’ve chosen to take a more positive stance, at least financially.

The attention this will bring to the greater crypto community far outweighs the potential threat to it. My concerns aren’t for Bitcoin, Ethereum, or any other blockchain project. As I said, I believe Project Libra will help cryptocurrency as a whole. What scares me is the power it will give Facebook over everyone who uses it.

I’ll save the ominous ramblings of a sleepless crypto-enthusiast for later on.

Facebook’s Cryptocurrency: good or bad for Bitcoin?

Facebook and Bitcoin are more complementary to each other than they are substitutes. Because Facebook is a mainstream medium, an introduction of a coin will normalize cryptocurrency use faster than any alternative, sparking curiosity across its gigantic user base and usher in the next big wave.

What is one of the largest hurdles to mass adoption? A lack of user-friendliness — Facebook has already proven user-friendly enough to garner 2.48 billion monthly active users. Hell, if your Grandma can send you bible verses on Facebook Messenger, it’s probably user-friendly enough for her to use for crypto-transactions. Bitcoin and other altcoins are intimidating. Our community, which I love, isn’t the most friendly. Sure we’re eager to help newbies, but as soon as someone mentions a thought or idea that conflicts with the majority, they’re treated like lepers. Facebook has already proven its ability to shepherd people down their user journey, I’m confident they’ll be able to make their coin as user-friendly as traditional currencies.

I think Facebook is a much larger threat to the dollar than bitcoin ever was. With so many users who will instantly be able to transfer value between each other in exchange for goods and services. If Facebook succeeds at making their coin a stable coin, they could overcome one of the larger issues Bitcoin is plagued with when discussing mass adoption, the fact that it’s so volatile.

Facebook having an existing platform with users allows it to skip out on the hardest part of creating a coin (adoption). Taking a step further, it seems GlobalCoin isn’t even that much of a threat to the dollar, the only direct competitor I see is Ripple (which I don’t endorse, and hate myself for profiting off of it at one point in my trading career). As someone who has spoken out against Ripple (XRP) repeatedly, you might be wondering why I can get behind GlobalCoin if it shares so many characteristics with XRP?

The answer is, Facebook’s best interest is more closely aligned with the best interest of its users than Ripple’s interests are aligned with their users. If Facebook does something that’s bad for the average Joe, the average Joe might up and leave the platform. I’m 100% certain Facebook will inevitably also serve the needs of corporate clients and banks. However, their gigantic user base will force them to keep the people’s needs at heart as well. It’s a numbers game for Facebook; they have to focus on the volume of FB users over time.

This should cause Facebook to crack down on the fake accounts and profiles currently active on their site. With the introduction of their own currency, new standards and regulations will have to be put in place on the platform. This could mean that anti-money-laundering and Know-Your-Customer practices will be implemented by them. This would cut down the number of fake accounts on their platform (which already negatively affects their advertising programs) and make it a lot more difficult to create duplicate accounts in the first place. It makes monitoring for fake accounts in the best interest of Facebook for multiple revenue reasons, which in the end is the most important motivator for the company.

Facebook will Force Regulatory Scrutiny & Shed Light on Technological Grey Areas in the Law

Because of the power of influence that Facebook wields, that is recognized by the government, Project Libra it will focus attention on cryptocurrency regulation... Facebook is bound to come across financial regulatory grey areas as it launches Project Libra. While many small projects skimp on their compliance efforts, thinking that they’re too small to be called out for it, Facebook will be dealing directly with governments to discuss issues that will be covered in the mainstream media, publicized to heights that most crypto-related news pieces never dream of reaching. Facebook and its massive amount of working capital will have the best lawyers available fighting in its corner. They could force the creation of legislature around subjects that until now have been unaddressed.

Ross Ulbricht

was sentenced to life in Prison for creating the Silk Road, a marketplace to buy and sell drugs. He committed a few other crimes along the way, but for the sake of this argument, let’s look solely at his crimes relating to the creation of his product.

The Silk Road (Product) wasn’t created to become a drug marketplace, it was created to be a market completely free from government regulation...

A little known fact about the Silk Road is that a large portion of its revenue came from selling consumer goods and commodities like wheat and condensed milk, in countries where these common goods were considered commodities. Let’s say The Silk Road was a literal road; would you charge the owner of the road for the crime of drug trafficking, or the drug cartel using the road to move its product? Charging someone for crimes that are the responsibility of the people using his transaction/transportation platform is a slippery slope and one that would label a lot of business people who are considered legitimate today as “criminal”.

What would happen if GlobalCoin somehow ended up facilitating the buying and selling of narcotics at scale? If people are able to manipulate a government-run election, it seems feasible that said people would also be able to figure out how to use GlobalCoin to traffic drugs. Would Facebook be held responsible for this? Would Zuckerburg spend time in jail for the sins of his users?

Helping the “Unbanked”

Beyond the positives brought to the crypto-community, I think GlobalCoin can also help citizens of third world countries who don’t have the luxury of a stable currency (or at least as stable as the Dollar is..) to store their value within. GlobalCoin will be pegged to a “basket of fiat currencies”, and is slated to be a stable coin. Many have tried to create a stable coin in the past with little success. However, Facebook definitely has the time, money, and resources to address the issue effectively. Facebook is offering people of impoverished nations a chance to take part in the global economy. Crypto advocates often spout scripture-esque rants about how Bitcoin will help bank the unbanked, providing banking services to the part of the world without access to them. In reality, this seems to be a far more feasible future for GlobalCoin.If accomplished, it would create a tremendous amount of goodwill and global citizenship that Facebook could use in light of the ongoing negative media attention following the 2016 election.

Is GlobalCoin the Last Stone in Facebook’s Infinity Gauntlet?

GlobalCoin will be good for Bitcoin, Ethereum, and the cryptocurrency market as a whole. This I’m confident of. What causes me some concern is the sheer amount of data Facebook will then own if they successfully launch this product. I’m excited about the launch of their coin because financially I believe it will benefit me, but I’m nervous for other reasons.

Netflix’s Black Mirror, a show that covers dark futuristic depictions of society, often shaped by technology can really scare the shit out of me One episode showed a world where every individual was assigned a social score. Every time you interacted with someone, they could give or take points from you(like the damn Uber drivers rating you while you’re rating them — it’s already begun!) These points went towards your social credit score — that are used to give you access to luxuries, determine if you could attend certain events, and even how other people treated you. A couple of years after the episode aired, China launched an eerily similar program that gave its citizens a social score. The program tied into WeChat and AliPay, quickly gaining over 200 million users. I haven’t spoken to any Chinese locals about their feelings towards the social score system, but as someone who jaywalks a little too often, I personally want to avoid a social credit score if I can.

“Alipay and WeChat are less like individual apps than entire ecosystems. Whenever Liu opened Alipay on his phone, he saw a neat grid of icons that vaguely resembled the home screen on his Samsung. Some of the icons were themselves full-blown third-party apps. If he wanted to, he could access Airbnb, Uber, or Uber’s Chinese rival Didi, entirely from inside Alipay. It was as if Amazon had swallowed eBay, Apple News, Groupon, American Express, Citibank, and YouTube — and could siphon up data from all of them.”

“The aim is for every Chinese citizen to be trailed by a file compiling data from public and private sources by 2020, and for those files to be searchable by fingerprints and other biometric characteristics. The State Council calls it a “credit system that covers the whole society.” — WIRED

Facebook is already one of the most recognizable companies in the world, but I’ve never heard someone say that “life would be extremely difficult without Facebook”. A journalist for BBC

made this exact comment about the Tencent owned messaging app, WeChat. How has WeChat made itself so necessary that life is difficult without it?

Facebook is something many people have a hard time deleting because it’s their only connection to people who may not be geographically near them, whether its close friends, family or the odd ‘virtual’ friends. They buy and integrate other services and features to make their platform more all-encompassing on a regular basis. Messaging. Marketplace. Money transfers. If it were to also add in the ability to take part in your local economy, and even the global economy, then Facebook is starting to border on a staple of human life. How would a company go about making themselves indispensable when they already control the data of a large portion of the population? It already added in a marketplace where you can buy items from one-another. If it became an umbrella that covered all the typical expenses we encounter in day-to-day life and allowed us to pay for them seamlessly, it wouldn’t just have a lot of data, it would have ALL the data. What is more important, your data privacy or personal convenience?

Perhaps Facebook is trying to emulate what WeChat and AliPay have done in China for the rest of the world. Perhaps they believe that by tying in a payments functionality with their own currency, they too can become indispensable. If Facebook were to achieve what WeChat and AliPay have achieved, but on a larger scale, it would be the most powerful entity on the planet. It would have the data and power to give us access to anything we could possibly want, right at our fingertips. The only concern I have is that if someone has the power to facilitate your access to something, they also have the power to take that access away.

I believe that GlobalCoin will be good for blockchain. I believe GlobalCoin will be good for cryptocurrency adoption. I am just not sure GlobalCoin will be good for humanity. I don’t think Facebook has bad intentions. I doubt any of its’ executives are sitting in a dimly lit conference room raising whiskey glasses to the future financial/social enslavement of society.

Yet, it feels like we’re coming to a tipping point. Where great forces too big for their own good start to butt heads in which the moral and ethical questions are not even asked. It seems like a shift in power is about to happen on a global scale, a shift to a world where large tech corporations write governing legislation in their Terms of Service (with slightly more detailed descriptions in their FAQ). I feel like I’m at risk of sounding over-ominous, but I worry that a dystopian future where corporations and governments have switched roles would not be good for the individual, small businesses, or even the crypto-enthusiast. If GlobalCoin becomes a global success, that future might not just be feasible, but inevitable.

This was originally published in Hacker Noon

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Chijioke Ilochonwu

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Crypto and financial education Youtuber (2016–present)3y

Why did Facebook spend so many years ignoring cryptocurrency as a potential business?

They were waiting to see if this was another passing Fad. With the price skyrocketing and the fees that miners make, they had to join mostly because of the money involved!

Award-winning fraud detection platformAug 19

Why can authentication be difficult with some digital wallets?

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Startup & Transitional Business Lead & Prospect Consultants3y

What should the average person know about Facebook’s June 2019 announcement of the Libra digital currency project?

The last person I would trust is the power hungry Zuckerberg, It is well known that those who control the money control the world, and you want this liar who has manipulated Facebook to a point he is obviously a blatant biased liberal who has a war on conservatives and worked with Russia allowing anything which was anti republican to remain while blocking conservative content. Who with half a brain would want a biased liar in such a powerful position, no thanks.

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