Money laundering and other security issues of cryptocurrencies makes Facebook’s Libra a security threat and is attracting the scrutiny from Congress. But if Libra is properly managed, than it would poses a bigger challenge that it could replace US dollar as the currency of choice, for the legitimate international transactions.
The White Paper by Libra presents an impressive list of the corporate backers, but it leaves out many important details about, how Libra’s infrastructure would work, and what would be the measures to be safe against the criminals and rogue regimes, such as the drug cartels and the North Korea that used the bitcoin to circumvent the economic sanctions.
Facebook CEO Mark Zuckerberg’s mammoth credibility problems in this matter don’t help. His inward-looking personality and the track record for abusing the personal information caused this announcement of Libra to prompt for immediate plans for the congressional investigations and hearings.
Facebook’s Libra would enable the computer payments like Bitcoin, via the block chain technology. The consumers would be able to buy the Libra with dollars and with other currencies. 2.4 billion users base of Facebook would give it unbeatable potential for the broad acceptance by the merchants and the governments for tax payments especially in the developing countries where many lack the access to any reliable banking.