With the popularity of cryptocurrencies and the market, large companies have also started to step into this market. One of those companies is Facebook, which we know well and is actually a social media platform. Facebook, which has been wanting to enter this market for a long time, has clarified its crypto money studies. Of course, this process is in the hands of regulators around the world in addition to Facebook.
Libra, Facebook’s cryptocurrency, which is still in the approval phase, may not be as effective as it planned in the first place.
Facebook enters the cryptocurrency market with Libra
Facebook’s cryptocurrency Libra may be launched in the near future, although it has been going through a long and painstaking process. The cryptocurrency is expected to launch in January 2021, although Libra has many confirmations to pass ahead. Libra, first announced in 2019, received significant support from various financial companies operating globally such as VISA and Mastercard.
However, there are also question marks on Facebook and the cryptocurrency Libra. The most important feature of crypto coins is that they are reliable and attach importance to consumer privacy. However, when we look at the data stealing and selling incidents in recent years, we see that Facebook has a weak resume in this regard.
There have been many fake advertisements for Libra before. Although these ads were removed by Facebook, they did not go unnoticed by security institutions. High-profile Libra supporters such as PayPal, Visa, Mastercard, Stripe and eBay signaled that they were withdrawing from the project one by one in order not to be overlooked by security agencies, following the rise of fake ads.
For this reason, the Libra Association decided to produce one or more fixed currencies fixed at the values of international currencies, which helped Libra enter the market earlier. Due to the strict rules of some regions, such as in Europe, there is also the possibility that Libra could be launched as a single coin backed by the US dollar. The ultimate goal is to create a unique synthetic coin backed by several currencies.