Privacy Blog

"Friends don’t let friends get spied on.' – Richard Stallman, President of the Free Software Foundation and longtime advocate of privacy in technology.

Libra Cryptocurrency Won’t Set Us Free, It Will Further Enslave Us to Facebook

Ok, first of all, the new Libra digital currency announced this past week by Facebook is NOT a cryptocurrency! Other than that error, an article by Kenan Malik in The Guardian web site describes several reasons why Libra is a bad idea, especially for anyone concerned with personal privacy. You can read the article at: http://bit.ly/2Ftllxp.

NOTE: Lots of news services are calling the new Libra proposal a “cryptocurrency” but it is not. Libra will have numerous similarities to cryptocurrencies but also is missing several things that are found in all true cryptocurrencies.

The word “cryptocurrency” is used to describe various decentralized digital currencies. The proposed Libra currency will be digital but will not be decentralized. Instead, it will be rigidly controlled by the 28 companies that initially will comprise the Libra Association, all operating under the rules and guidance of Facebook.

The word “cryptocurrency” is used to describe various decentralized digital currencies that float in value, based upon marketplace forces. In other words, a cryptocurrency is worth whatever its users believe it is worth (just like dollars, Euros, Pounds Sterling, and other government-issued currencies). Libra will not float in value. Instead, Libra will be backed by Facebook and the other members of the Libra Association. The value of each Libra “coin” will be rigidly controlled by this “Association.” This guarantee is supposed to be based upon the value of the assets that back the coin.

The Libra white paper states, “Libra is designed to be a currency where any user will know that the value of a Libra today will be close to its value tomorrow and in the future.” That is in direct contradiction to cryptocurrencies and also to fiat currencies (dollars, Euros, Pounds Sterling, and other government-issued currencies) that are not backed by any assets.

Some writers are referring to Libra as “the Bank of Zuck.”

Given Facebook’s abysmal record of privacy and spying on its users, do you REALLY want to use a digital currency that was created by and is controlled by Facebook?

Categories: Crypto Currencies, Offline Privacy & Security, Online Privacy & Security

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