FACEBOOK LIBRA: PROS AND CONS, WHAT CAN WE EXPECT FROM IT
Facebook has announced its digital currency Facebook Libra and will be on public in 2020. By next year, users will be able to transact in Libra across the suite of Facebook’s social platforms, including Messenger, WhatsApp, and Instagram. All these transactions will be done through Calibra wallet ( Facebook own wallet).
Is Libra beneficial or risky? Has become one of the most popular questions now.
Libra can be helpful for the people who do not have access to Bank. A recent survey shows that almost 1.2 billion people do not have a Bank account. Libra can make their transactions much easier. A user won’t require any credit card, account number, etc anymore. Facebook wallet ( Calibra) will make that possible.
Most of the cryptocurrencies require constant High Internet connection. It is difficult for those people having a limited internet connection. Using mobile data to use cryptocurrencies is Costly. Libra could be beneficial in those areas.
Despite having such advantages, there is a dark side of Libra too.
It will definitely destroy commercial and Central banks since people can do their transactions through an app Calibra ( Facebook’s Digital wallet).
It is hard to trust Facebook because it sold the data to Cambridge Analytica who finally uses that data to manipulate the presidential election in the US.
Everyone knows that Facebook also used it’s user data in the election of Africa. It seems like there is no good record of Facebook. Now, Facebook will have the Buying and selling data of each libra user. Imagine in which way Facebook will use this kind of data.
Facebook claims Libra is built under the blockchain technology. However, the crypto community is saying it is a database and has become more difficult to trust Facebook.
Libra has advantages and disadvantages but we can only decide whether it is risky or beneficial when it will be live in 2020.