December 9, 2022

Twitter & Facebook: cryptocurrency dissonance of global tech giants “/>

Twitter & Facebook: cryptocurrency dissonance of the world's tech giants "/>
Twitter & Facebook

Just half a year ago, the ambitious cryptocurrency project Facebook - Libra - shone in the light positive prospects and financial opportunitiesfor all interested parties. The situation has changed radically. The project was not only left by PayPal, Visa, Mastercard, eBay, Stripe and Mercado Pago, the US Congress criticized the Congress completely, but also the director of the second giant Twitter network, Jack Dorsey, spoke out negatively.

He commented that Libra has nonothing to do with cryptocurrency, and during the speech of Mark Zuckerberg in front of the US House of Representatives, there was a focus on American consumers, rather than the global audience that underlies the work of his network. Mark Zuckerberg, although he did not respond to Dorsey's comment, said he would leave the Libra Association if the project was not approved by regulators. But he also emphasized that this organization is independent and can independently promote the project.

Twitter & Facebook: cryptocurrency dissonance of the world's tech giants "/>

Libra - the death or salvation of the global financial industry

In the summer of 2019, an active user baseFacebook amounted to 2.41 billion people worldwide. If you also take into account users of Instagram and WhatsApp, owned by Mark Zuckerberg, the number of possible Libra customers exceeds the population of even such populous countries as India or China. The head of the Libra Association himself positions this as a great opportunity for millions of people to pay with a stable blockchain tied to a basket of the most widely used fiat currencies like the US dollar, Japanese yen, euro, Singapore dollar and British pound. After all, with the help of Libra, users will be able to send money to each other, pay for goods and services within Facebook services.

However, the authorities have a completely different viewthe launch of stableblokoin for fear of negative consequences. According to US congressmen, a private company that has become a gigantic financial institution can compete with entire countries. If we add to this the negative reputation of the Zuckerberg network regarding the storage and use of users' personal data, as well as the threat of money laundering and terrorist financing, it becomes clear why regulators are literally from all corners of the world categorically opposed to launching Libra.

Twitter & Facebook: cryptocurrency dissonance of the world's tech giants "/>

Cryptocurrency Way Twitter

In 2009, the founder of Twitter launched anotherone technology giant, Square, to receive and process electronic payments from credit cards via smartphone or tablet. As of 2014, the company processed 446 million payments with 144 million cards for a total of $ 23.8 billion. In 2017, Square added the ability for users of their mobile app Cash App to purchase, sell and transfer bitcoins to other wallets.

This winter, Jack Dorsey after holdingThe Lightning Torch charity event announced that it will definitely implement the Lightning Network second-level Bitcoin protocol in its Cash App payment application. It is worth noting that the action was held to demonstrate the capabilities of the Lightning Network, which aims to solve two main problems of the Bitcoin blockchain: lower cryptocurrency transfer fees and speed up transaction time.

Some time later, the founder of twohe acquired the technological unicorns from the Casa Lightning node, and introduced the Tippin service on Twitter for micropayments from the Lightning Network on Twitter. In addition, this summer, Square introduced Bitcoin deposits into the CashApp application. Obviously, Jack Dorsey's cryptocurrency payment solutions do not provide for the creation of his own cryptocurrency, but are aimed at improving and improving the existing one to which he is fully committed - Bitcoin.

Jack Dorsey's beliefs versus Mark Zuckerberg's wishes

Jack Dorsey, unlike Mark Zuckerberg, does notIt aims to create its own cryptocurrency, and implements projects around Bitcoin. He has repeatedly stated that it is her who sees the future native currency of the Internet. In a podcast to Joe Rogan, he said this:

“I am convinced that the Internet will have a nativecurrency. I assume that Bitcoin may become one, given the tests through which it passed, as well as the principles on which it is built. He was born on the Internet, developed on the Internet and passed the test on the Internet. ”

At one of the events in New York, Jack Dorsey also commented on Mark Zuckerberg's speech to the US Congress:

“Libra is not based on an open standard, born on the Internet, but out of the personal intentions of the company, which does not correspond to either what I personally believe in or what I want our company to uphold.”

He also said that much of whatsaid the founder of Libra, based on American traditions, and this concept may make it impossible to experiment and expand for Twitter, "serving a global audience." In the end, Jack Dorsey said that he was not considering the possibility of joining Libra, and the project itself did not consider cryptocurrency at all.

Meanwhile, Mark Zuckerberg has a different vision.for the cryptocurrency future and its prospects. In his opinion, Libra will be stable, unlike bitcoin, as it will be provided with a basket of fiat currencies. In addition, he believes that now “people pay too high a price for transactions and have to wait too long to complete them,” and Libra will allow transfers and payments to be made safely and quickly for anyone who does not use bank accounts for various reasons. For now, Facebook’s CEO’s arguments have been strongly rejected by global governments.

Libra implementation

During the sensational performance of Mark Zuckerbergin front of the US House of Presidents, congressmen asked why key companies such as PayPal, Visa, Mastercard and eBay left the project. To which the head of Facebook replied that it was “a risky project that is undergoing scrutiny.” From previous information it is known that it was Senators Brian Schatz and Sherrod Brown who threatened these companies with "close attention not only to payment transactions with Libra, but to everyone else." Mark Zuckerberg defended his position by wanting to provide quick and affordable payments for those who for various reasons do not have bank accounts.

Twitter & Facebook: cryptocurrency dissonance of the world's tech giants "/>

What Congressman Brad Sherman stated:

"You, the richest man in the world, come here andhide behind the poorest people in the world. And say you're trying to help them. In fact, you are trying to help those for whom the dollar is not a good currency: drug dealers and tax evaders. "

Members of Congress also pointed out to Mark Zuckerberg onall previous Facebook failures. To which he recognized the existence of many shortcomings in recent years and the fact that “many people would like this idea to be proposed by anyone else, but not Facebook.

At the same time, the platform director assured thatwill support the launch of Libra only if all permissions are received from financial regulators. To which they, in turn, asked, “how will Facebook behave if the majority of partners' votes are in favor of launching Libra without the appropriate permissions?”. Facebook CEO replied that he would quit the Libra Association in that case and would be forced to leave the project.

We can clearly see in the example of CEO Twitter thatit is not necessary to create your own cryptocurrency in order to bring technological innovation to the real world. At the same time, it is obvious that megaprojects such as Libra Facebook bring a huge amount of difficulties to their implementation. Whether this will turn out to be a useful means of payment for peaceful users or an ideal weapon for terrorists, apparently, remains an open question not only for Mark Zuckerberg himself, but also for all state authorities.

And despite the fact that in connection with the latterIt’s quite difficult to predict how events around the stableblockin Mark Zuckerberg will develop, it is safe to say that such a large-scale solution will have a significant impact not only on the entire cryptocurrency industry, but also the entire global financial market. One can only expect whether the Libra Association will come to a positive consensus with the US government and other countries, or whether they will start to launch the project on their own, despite all the bans.