Libra has been a hot topic since the beginning of 2019. The idea of creating a strictly Facebook currency that can be used for e-commerce has sparked the attention of the world’s largest tech companies. Unfortunately, Libra seems to be more of an idealist’s wet-dream, and it is currently far from reality. Rumor has it that Paypal has removed itself as a board member of Calibra, the company that created Libra. Amidst Facebook’s struggle to overcome the recent data-piracy scare which revealed Facebook’s mass data collection, companies such as Telegram and Whatsapp are creating currencies of their own, so they can create their own e-commerce market. When deciding between Whatsapp, Telegram, and Facebook, which would you choose?
Telegram has officially announced its involvement in the Telegram Open Network (TON.) It seems that Telegram’s TON will be as cryptic and mysterious as the platform itself. According to the ToS, Telegram will not keep personal information of its users:
“You are solely responsible for managing and maintaining the security of your Credentials. If you lose your Credentials, we do not have the ability to recover your Credentials or assist you in retrieving your Credentials, and you may not be able to access your Grams”
It is understandable that Telegram chooses not to follow Facebook’s mistake of mining personal data, but does anyone else feel that this is a red flag? Yes, the purpose of cryptocurrency and blockchain is to further security in transactions through transparency and speed; however, Telegram is an app that allows offline conversations and supports privacy, but if I was an investor who considered Telegram as a viable option, I would need to trust Telegram’s blockchain.
Lawkchain is going against the common belief that “Facebook will know everything about you once they know about your transactions.” From a cryptocurrency perspective, ANYONE who uses cryptocurrency understands that they are including their bank account information for a crypto-transaction, one way or another. Yes, there are cryptocurrencies that are not stable-coins, but at the end of the day, the world still runs on “fiat currency.” For newcomers, fiat means, simply, cash; how the modern world currently distributes cash. Before you quickly join the Libra critics, consider what Libra is ideally trying to accomplish. Facebook executives want to connect all of its users around the world through a hardline currency. That idea is pretty alluring. Here’s why. Facebook is the reason why people can communicate and update people from different parts of the world. We can reconnect with old friends; discover unknown relatives. What if a centralized currency could do the same? Keep in mind, this will take a long time to regulate, but allowing payments to travel as quickly as a viral video on Facebook or Youtube video can travel might be an extremely innovative development that can change the way we see the world.
Libra is not necessarily THE cryptocurrency that people should purchase. Nor is it likely that Libra will actually operate in the near future. However, we are entering a new era where speed for manufacturing and transportation is absolutely essential for a quickly globalized world. Do not look at Libra as a problem; look at Libra as an opportunity that can help centralize and globalize financial transactions. Facebook is likely not going to succeed with this idea, but certainly a company that is larger than life; is practically integrated into our daily lives; and is full of capital will find that bridge between the legal tendered dollar bill and an international cryptocurrency.