Experts are concerned Libra could people's privacy and security at risk

Published on by Cryptoslate | Published on

In light of the hype surrounding Facebook's new "Libra" cryptocurrency, it's important to pause and be just as critical of it as other cryptos.

How Facebook handles security threats will be crucial.

Given the likelihood of hacking, Facebook's attention to its digital wallet is flawed, putting consumers in the Facebook ecosystem at substantial risk, Hoyos said.

Steven Elisc, executive VP of Corporate Development at DMG Blockchain, said he expects Facebook's privacy concerns to remain at the forefront.

"Just as Alipay and WeChat Pay are vehicles to potentially allow the Chinese government to monitor the transactions of its citizens, in a similar way, Facebook could allow transaction data to be used in a way that invades user privacy. Given ongoing news about Facebook in this regard, we expect this."

Desai joined many others in saying that Facebook's crypto could be the catalyst for mass adoption of cryptos, pushing them to the next level.

"Up until now, we haven't seen institutional cash come into play due to regulations and, in my humble opinion, fear of the unknown. But Facebook's Libra will give digital currencies a level of legitimacy and acceptance we have not seen previously while providing more options than established cryptos."

Likening Libra to a "Security backbone," Desai acknowledged it will allow Facebook to gather more data.

"If Facebook develops this right, they will also be able to scale better than bitcoin and Ethereum while increasing speed and agility and revamping the crypto landscape. Because blockchain is open source, the benefits to this kind of a payment platform not only suit Facebook, but the consumers who buy, sell, and partner with the organization. And if these developments progress the right way, the crypto market will actually be able to achieve the stability it needs."

Calling herself a crypto evangelist, Desai said Facebook has an opportunity here that will benefit newbies and veterans alike.