Facebook may not launch Bitcoin rival cryptocurrency Libra in India; here's why

Facebook may not launch Bitcoin rival cryptocurrency Libra in India; here's why

Whether or not Facebook will be able to drive global e-commerce within its apps via Calibra depends entirely on the success of the Libra cryptocurrency it is helping develop. Facebook is preparing for the 2020 release of the service that is not just for sending money but also for spending and saving.

Rep. Maxine Waters (D-Calif.), who chairs the powerful House Financial Services Committee, called on Facebook to place a "moratorium" on the launch until Congress and other regulators can explore its potential impact.

Facebook will peg the currency's value to a basket of established currencies, including the US dollar, the euro and the Japanese yen, according to the Guardian. "If Facebook succeeds in scaling its blockchain payments project to its more than 2 billion users, the company will deliver on Peter Thiel's original vision of online payments".

She expects Libra will fall under U.S. regulations adopted in the wake of the 2008 financial crisis.

While Libra intends to solve some issues cryptocurrencies face, Powell said that Facebook's group, which include Visa, Mastercard, Paypal, and Uber, needs to address and overcome other issues before Libra can be made available worldwide.

There is no official launch date for Facebook's digital wallet app or cryptocurrency, nor has the company said whether it will be available globally right away.

McNamee, who has been an outspoken critic of the platform, is also the author of "Zucked: Waking Up to the Facebook Catastrophe".

In May, the leaders of the Senate Banking Committee wrote to Facebook seeking information on rumors of its cryptocurrency project, and how it would protect consumer information. The real fact is that Facebook is a platform for billion users across the world and anything concerning cryptocurrency is a matter that eventually raised the eyebrows of regulators.

As governments around the world consider how to limit the commercial clout of big technology companies, Facebook has announced it is poised to expand that influence into the fundamental heart of all commerce: Money.

The open source Libra blockchain will operate as a permissioned network initially, but with transform into a permissionless network approximately five years after its launch.

The company says Calibra will only share user information with parent company Facebook and third parties when it receives user permission to do so.

Perhaps the most interesting comment was the fact that Facebook took the time to meet with the Fed in advance of the Libra announcement.

Calibra also plans to allow real-time conversion to local currency, used to remove any fluctuations in foreign exchange.

Still, she said, people could be alarmed because of Facebook's use of data in the past. "Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies".

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