acebook’s plan for Libra, a global cryptocurrency, doesn’t make much sense.
At a high level, cryptocurrencies have repeatedly proven vulnerable to theft. Although blockchains themselves have (usually) remained secure, users have lost billions of dollars. From basic password management to phishing scams, crypto is, well, dangerous. There’s nobody to save you if your bitcoin gets stolen—no insurance, no customer service. You are your own security, for better or worse.
More worrisome, though, is what would happen if a cryptocurrency, like Libra, were launched on a large scale. The storage and security challenges particular to the crypto community could affect a far greater swath of the global financial system. People who turn to Facebook’s Libra to transfer money could face challenges normally associated with bitcoin’s irreversible transactions. What happens if somebody steals someone’s password? And what if they accidentally send money to the wrong person? It could have difficult ramifications for the financial industry.
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