Libra: why is the cryptocurrency initiated by Facebook so much debate?

he cryptocurrency of Facebook raises many debates, especially with European governments. While the wave of blockchain shakes the world of tech for several years, Facebook's project Libra seems to give a second wind to cryptocurrencies, for which the craze had somewhat marked the pace after the big fall of Bitcoin early 2018. But if the project announced shortly before the summer 2019 (but started in 2018) is currently much talk, it is also because a wind of criticism falls on him. To begin, remember what Libra is: initiated by Facebook, this cryptocurrency in the making is managed by a non-profit foundation, based in Geneva, whose governance is entrusted to a consortium of 28 major companies and NGOs who have each invested 10 millions of dollars. Among them, Facebook, but also payment services (Visa, Mastercard, Paypal, Stripe ...), merchant services (Uber, Lyft, Ebay, Spotify ...), telecom companies (Iliad, Vodafone), cryptocurrency (Coinbase , Anchorage ...), investment funds (Ribbit Capital, Union Square Ventures ...) or NGOs (Mercy Cops, Kiva ...). Libra is based on different technologies already existing in different cryptocurrencies, and enjoys the advantages of this technology: transaction costs close to zero and the registration of transactions in a decentralized register, while having a much lower energy cost than that of Bitcoin. In the case of Libra, each member of the consortium would run one of the nodes of the network, helping to secure the exchange of data (and funds), but not opening the door to individuals (no proof of work). Note also that the programming language Move is integrated, and thus allows the implementation ofsmart contracts , as on Ethereum. One of Libra's stated goals is to facilitate payments and currency transfers through Messenger and WhatsApp, but also to enable online purchases. No particular effort is noted in terms of anonymity, it will be possible to trace the transactions even if they are not directly registered. No desire therefore, a priori, to create a parallel and anonymous monetary system that could be scary. But this is not the taste of some governments, starting with France. Bruno Le Maire expressed himself in a decisive manner at an OECD conference last Thursday " In these circumstances, we can Rajput Status vediostatus.com Hindi | Royal Rajput Status | Rajputana Status In English | Rajput Attitude Status | Rajput Love Status | Rajput Shayari not authorize the development of the Libra on European soil". In general, the Minister of Finance reiterated his desire for a strong regulation of cryptocurrency by the states: " I do not see why the new technologies would necessarily be guided by a libertarian ideology that refuses any regulation and contests any role in 'State '. He still talked about the blockchain as a major technology of the 21st century, not closing the door to controlled use. Bruno Le Maire handed the cover on Friday, in a joint statement with Germany, via Olaf Scholz, stating: " We believe that no private entity can claim monetary power, which is inherent in the sovereignty of nations ". The statement also adds that "The libra, as presented by Facebook, fails to convince that the risks they pose will be properly taken into account."A firm position, which is accompanied by the desire to better manage cryptocurrencies in general but also to create a digital currency on a European scale. Facebook and its partners must in any case obtain a regulatory authorization in order to have a license as a payment system and thus operate in Europe. A request has already been made on this subject in Switzerland . The latest episode is the holding today of a meeting in Basel between representatives of Libra and the heads of 26 central banks, chaired by Benoît Coeuré (governor of the European Central Bank). Libra raises many concerns, both in the United States and in Europe, and this meeting must clarify some questions, before a report is given to the G7 finance ministers in October. A first meeting that should precede many others ... The statement made a few days ago by Rajput Status vediostatus.com Hindi | Royal Rajput Status | Rajputana Status In English | Rajput Attitude Status | Rajput Love Status | Rajput Shayari Gabrielle Rabinovitch, director of investor relations for PayPal, a company that is part of the consortium headed by Libra, makes perfect sense. "Of course, I think there is still a lot of work before we get to the point where it becomes more than just an exciting idea. " And behind this resistance to Facebook and Libra hides wider question of cryptomonnaies, their impact on the sovereignty of States, but also what they might change in the economic life of its users. No doubt the coming months will be animated by these questions! And that the planned release of Libra in 2020 may seriously be complicated.