Facebook founder and CEO Mark Zuckerberg made some rare comments on Facebook's new cryptocurrency Libra. CNBC's Fast Money posted a video of Zuckerberg's speech on Twitter. In this video, Zuckerberg says:
“To build a financial system, this is not something a company can do on its own. So we have a role in helping to achieve this goal. But the Libra Association is an independent organization, we have only one vote in it. …when Libra is officially launched, I hope we will have 100 co-founded companies."
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Mark Zuckerberg’s assurance of Libra is a “joke”
The partner companies mentioned by Zuckerberg should not give consumers or businesses more reasons to trust Libra. Of course, Libra should not trust more than their decentralized PoW encryption like Bitcoin and Ethereum. currency.
Libra participants have a record of failing to protect their financial information. They cannot guarantee that your money or information will not be affected by the inevitable data breaches of the Internet age. This is not just because they are not trustworthy by nature. The problem is that all corporate finances have inherent counterparty risk. This is especially true in the Internet age, and Libra's two largest co-founders are Visa and MasterCard. These companies have never gotten rid of data leakage.
In 2005, the CardSystems solution was compromised and lost 40 million accounts. Of these, 14 million are MasterCard credit card accounts and 20 million are Visa accounts. The 2017 Equifax data breach revealed the credit card information of 200,000 Visa and MasterCard account holders.
Another Libra partner is eBay. In 2014, cyber thieves invaded eBay's three company employee accounts, which resulted in all the data for the then 145 million eBay users.
Uber is another co-founder of Libra's corporate history of violations. In May 2014, hackers invaded the account data of 50,000 Uber drivers. It was not until September of that year that Uber realized this. Surprisingly, the company did not disclose the vulnerability until February 2015, six months later.
In the second year, hackers invaded the personal information of 57 million Uber passengers, and Uber waited until the second year to disclose the data breach.
It turns out that just because your photos and private information have been leaked repeatedly, you can conclude that Facebook is totally untrustworthy – not to mention your money. It seems that the Cambridge analyst's scandal is not bad enough. The hackers invaded 50 million Facebook accounts in September 2018.
Now, do you still think that all these giant partners will make Libra more trustworthy?
With Bitcoin, you don't need to trust anyone
Bitcoin triggered the cryptocurrency revolution, and its design architecture brilliantly achieved a great idea. Digital information can be protected by an open source, unlicensed, decentralized network without the need to trust third parties.
What Libra stands for is exactly the opposite.
The Bitcoin network has achieved this great idea to ensure the security of financial records and transactions, as this is the most valuable digital information. Before the advent of Bitcoin, consumers and businesses must trust third-party agencies that have proven themselves to be untrustworthy in this information.
This is not to say that the banker or company is a bad person.
Rather, there is corruption in the incentive mechanism of the financial system itself. The history of the banking industry is a record of massive theft and fraud. In the computer age, even with the best intentions, it is impossible to fully protect the centralized database.
Libra is a business as it used to be. Bitcoin is the currency of the Internet.