3 Reasons Not to Trust Libra, Facebook’s Cryptocurrency

Rafael Augusto B.L. de Oliveira | @ancient_scrolls

Facebook is currently creating its own cryptocurrency, Libra. But before deciding whether to use it, we should first look at the big picture and think carefully why the Silicon Valley monopoly wants a piece of the cryptocurrency market. Are there good intentions? Or does Mark Zuckerberg only want to increase his profits while furthering his control over us? Those are important questions to ask before deciding if you should trust Big Tech with your hard-earned money. Ultimately, Libra doesn’t make the cut and doesn’t deserve our trust.

1. A Centralized Cryptocurrency Isn’t a Real One

“The root problem with conventional currency is all the trust that’s required to make it work” – Satoshi Nakamoto

Unlike other cryptocurrencies, Libra will not rely on mining. Also, only participants of The Libra Association will be able to accept or reject transactions via their permissioned blockchain. Unlike every other cryptocurrency, Libra doesn’t use a permissionless blockchain. This is a big deviation from what Satoshi Nakamoto envisioned when he wrote the Bitcoin whitepaper.

On the contrary, the Libra Association will act as a middleman behind all the transactions occurring in their network. They pretty much act like a regulatory central bank. Libra and decentralization don’t even belong in the same sentence. In fact, they aren’t that much different than any other government or private bank-backed currency.

2. Libra, a Wolf in Sheep’s Clothing

“We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception. That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.” – Facebook’s stance towards cryptocurrencies in 2018

Let’s not forget that not so long ago, Facebook banned ads promoting cryptocurrency. It seems very suspicious that all of a sudden, the corporation is reversing its stance. In fact, they once called anything related to cryptocurrency “financial products and services frequently associated with misleading or deceptive promotional practices”. Now, they decide to jump into the crypto wagon. Perhaps in the eyes of Zuckerberg,  cryptocurrency is only acceptable if he can control it, as he will Libra.

3. Risk of Political Censorship

In times where anything we say or do can be taken out of context, deplatforming is a serious issue. After all, Facebook recently announced that they ban death threats, but not to people or groups they don’t like. Is it really safe for people who run counter to Facebook’s agenda to use their not-so-crypto-currency? Could Zuckerberg have the ability to tamper with Libra wallets and/or take away users’ access?

Anyone using Facebook’s Libra should have a legitimate fear of losing their money. Like many Silicon Valley corporations, Facebook is well known for de-platforming and banning people who don’t agree with their political views or are too “controversial“. So, in case you are the kind of person who enjoys expressing your political opinions, you should stay far away from trusting Zuckerberg’s Libra. His record is poor at best at tolerating dissent.

Libra: Opposing the Cryptocurrency Movement

Without a doubt, there is reason to mistrust Libra; it appears to go against the very foundations of crypto. I’m quite skeptical about Facebook’s claims of Libra being an anonymous cryptocurrency with any degree of decentralization. After all, Facebook has a long history of not respecting it’s users’ privacy and stealing personal data from them. Let’s also not forget that in 2018, Facebook was caught mining data about its users without consent. Facebook’s claims of Libra being a cryptocurrency that will protect the privacy of its users is all smoke and mirrors.

A critical aspect of cryptocurrency is anonymity, and Libra falls short. It doesn’t seem like it will protect users from greedy bankers, abusive taxes and possessive governments, either. Facebook’s Libra doesn’t sound anonymous and decentralized at all. In short, Libra seems like a sneaky attempt on behalf of Zuckerberg and Facebook to control the crypto scene. Use it at your own will and risk.

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