#289
Zuck Money
Published:
May 25, 2019
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Despite losing control of our data, Facebook is asking for control of our money with their proposed launch of a stablecoin.
The plan is for Facebook's “Project Libra” or “GlobalCoin” to launch by the end of 2020 and offer its own digital currency pegged to a basket of world currencies that is reflective of Facebook’s 2.4bn global user base - including the US dollar, the Euro, and the yen. Many interpret the move as a bid to follow in the footsteps of so-called “superapps” such as China’s WeChat, that allows users to send money, shop, order taxis, and play games without ever having to leave the one platform.
To move the ball forward, Zuck has been out there chatting up the governor of the Bank of England, traditional payments companies, and even theWinklevoss twins (ironically), who famously sued him for nicking the original idea for Facebook.
While Facebook could certainly help bring cryptocurrency mainstream, it would require consumers to trust a single big tech giant for the custody, clearing, and settlement of their digital money. Such a construct goes against the decentralized ethos that underpins the crypto revolution.
With the Cambridge Analytica scandal and recent revelations that Facebook stored millions of its user passwords in plain text vivid in people’s minds, will consumers have the trust to leap in and get their feet wet with Zuck’s new Internet money?
Zuck Money
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