Why Libra is the biggest Facebook mistake of all

Facebook is so 2017. 

I wonder how much the Facebook Libra/Blockchain team considered the regulators perception to ICO’s when making their announcement publicly? Was it part of their plan to rustle more feathers? Or was it just a marketing campaign to help open communication channels with “…governments, central banks, regulators, non-profits, and other stakeholders…” as stated in David Marcus’ response letter to the U.S. Senate Banking Committee. He is testifying in front of the committee on Tuesday July 16th, 2019.

Why did Facebook make a grave mistake?

Unless this part of some Psy-Ops plan to manipulate the U.S. government into allowing Facebook to “back into” a less controversial blockchain related product, then they have just thrown themselves into regulatory limbo. Which is basically where projects that are too big for their britches go to die. Just ask Tyler and Cameron Winklevoss about their proposed Bitcoin ETF.

Facebook has violated the trust of many and is heading into a 15 billion dollar class action lawsuit. If I was working inside Facebook’s Libra/Blockchain team my priority would have been to create a privacy solution around identity. Instead, they went down the path of building a stablecoin. They are focused on the transfer of money and bringing in big name companies to run nodes. Facebook has thrown its hat into the ring for last bit of data they could not gain insight to, your financial data.  

The job of the banking cartel is to establish itself as a middleman, scraping fees for services, while providing you access to your own wealth. Facebook say your transactions will be private and they will not have access to your funds. But… something still doesn’t smell right.

Financial institutions currently use your financial data to create profiles on you. Why shouldn’t we expect Facebook and its partners to do the same? They have yet to show us they can be trusted. So why not build a product to gain trust?

Building a product to gain trust is a two fold win. 

  1. It cements Facebook’s commitment to privacy while
  2. Building a positive rapport with those stakeholders they mention

Companies like Blockstack, who are using blockchain technology to provide the tools to build a user centric based internet, are the types of companies that are doing things the right way. Not to mention their positive standing with regulators like the SEC, who recently approved Blockstack’s Reg A+ Security Token sale. This is the first known SEC approval and is a trailblazing moment for the legitimacy of the cryptocurrency industry.

“Hey Facespace, thanks for showing us your true colors.”

If Facebook had worked on solving a problem they helped create and facilitate, instead of a greed based middleman solution, we might be talking about them in a different light. Unfortunately, they are trying to encompass billions of people build under a Libra economic insulative blanket. Instead, they should be building bridges for a more secure and sovereign society for which the world would be thankful.

-Chris Groshong | Twitter

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