The Cryptocurrency of Facebook's Libra is Quickly Losing Friends

The release of a digital currency has been the most ambitious of everything Facebook has achieved in the last few years and is one of the most vulnerable to any potential problems. This is especially true of an organization with the many questions about privacy that seem to continue to emerge each week.

That's why it was very much the Wall Street Journal announced on Friday that PayPal, an ostensibly independent Libra group founding member, had decided that it's out. That is after MasterCard and Visa, other partners, were hesitant to continue their work following significant US and E.U. push backs. Legislation. Governments.

I don't think anyone asks Facebook the scope or know-how to build a digital currency.. Facebook is suitable to provide financial services to a large number of people through the payment process throughout the network, including under-banked populations.

It is not difficult to see why financial payment companies are interested in promoting Facebook's efforts to make payments simple with the global reach of more than two billion users. But it's not a challenge to reach a large customer base.

The firm also has many smart people working on a team led by the former president of PayPal, David Marcus. I'm sure that Facebook and Marcus will help if anybody can find out the technical side of doing this. It's not a concern with technology.

This is a confidence issue. So Facebook's trust is a big issue.

In fact, the technical side of Facebook might be handling itself. This gets recognition from companies such as PayPal, MasterCard, and Visa. Facebook loses its reputation with consumers as well as with regulators without existing partners who are able to jointly sign their trusted names.

While an impressive group of companies have joined the Libra Alliance, which would act as an internal digital currency governing body, these organizations are now starting to reconsider the need to be so strongly aligned with Facebook.

The partner in Libra does not reconsider its position because it doesn't believe it can work, but instead begins to wonder whether it is worth it. If you accept Facebook criticism on a number of issues, from how it handles the personal information of users to how it is communicated with external contractors. This is fair.

Facebook CEO Mark Zuckerberg allegedly received a leaked audio transcript from the Verge.

That seems like an optimistic prediction, if the founding partners are either out already or are searching for the window, it's difficult to reach 100. Again, this is part of the Libra problem. How can Facebook think creating a digital currency is a smart idea at the moment, despite all the critiques and challenges it has encountered in recent years?

To be honest, the idea looks completely daring. But, this is Mark Zuckerberg, who, as a true believer, just sees Facebook in his own eyes with the idealized prism. Zuckerberg wants us not Facebook bad behavior to judge him against his good intentions. He clearly doesn't see all of us ' problems.