Facebook has recently released its new digital currency project called Libra. The firm aims at helping individuals around the world processing transactions and payments in a fast and easy way. However, there are some individuals that claim that Libra is not a cryptocurrency. In a recent post published on Reddit by CryptoManiaks, the user gives five reasons why Facebook’s digital asset is not a cryptocurrency.
Is Libra A Cryptocurrency?
The first thing that the author of the article mentions is that the virtual currency is not censorship resistance. That means that the company is expected to be able to control and decide whether a transaction is valid or not. According to this post, Facebook is required by law to censor certain transactions that might be linked to criminal activities or illegal things.
Libra is not borderless, as per the infographic shared by the Redditor. For example, Facebook would have the possibility to block some transactions depending on the country of origin or destination. If a user wants to send funds to Iran, it might not be able to do so, or vice-versa. Bitcoin (BTC) and other cryptocurrencies work in a different way. Users do not have to request permission to anybody to send a transaction, regardless of the country of origin or destination.
Furthermore, a third reason related to why Libra shouldn’t be considered a cryptocurrency is because it is not neutral. That means that the digital asset cannot be neutral to every human on earth. Individuals in Venezuela or North Kora, would not have the possibility to send or receive funds through Facebook’s crypto platform.
In addition to it, Libra is not public. The Redditor’s graphic says that Libra cannot be public. It also cannot create a public API or provide transparency. This is in order to follow the rules that are implemented by several countries around the world. Finally, Libra is not open, they cannot give access, extract it or sell it to someone else outside of the Libra platform.
Libra is going to be backed by a basket of currencies from different countries, including the United States, Europe and Japan. The euro, the Japanese yen, the US dollar and the British pound are just going to be providing stability to Libra.
There are several analysts that consider that the virtual currency has helped Bitcoin reach new highs. A few days ago, Bitcoin surpassed $11,100 after more than a year under that level.
Try Out Binance Today
For over two years, UseTheBitcoin has done the research, covered the news, and helped readers find the best blockchain projects. The one thing we keep coming back to is Binance.