There have been reports of imposters on Facebook and Instagram trying to either sell or claiming to represent Facebook’s yet-to-be-launched cryptocurrency, Libra.
This fake wave has caused quite a stir on social media platforms like Instagram and Facebook itself as these vendors are floating all over the internet and attracting the attention of investors.
This act of fraud has also built up more suspicions as to how Facebook would handle issues relating to trust, privacy and data protection. Libra, which failed a regulatory test with the U.S Congress recently, had been questioned along these very lines and now, impostors using the platform for illicit activities relating to its own very cryptocurrency would do more damage than good.
Following the report that Washington post alerted Facebook of the brewing problem, a couple of such accounts being used to establish the act were removed on Facebook. However, more accounts keep surfacing on the platform ever since.
According to Eswar Prasad, an economics professor at Cornell University,
“There is a deep irony here in Facebook being used as the platform that could undermine trust in the currency Facebook is trying to build trust in, ”
“Facebook has an enormous worldwide network and enormous financial muscle . . . But the only way Libra will work well as a medium of exchange is if everyone can trust it. And that’s the big question right now: whether there is going to be enough trust in Facebook.”
Facebook is currently battling regulations around the world in relevance to its planned cryptocurrency, Libra. Many countries gave opposition towards Libra in relation to Facebook’s inability to handle data and privacy issues. Recently, Facebook was fined a whopping $5 billion for data leakage and this has also presented Libra in a negative light. For Facebook, having early imposters of Libra and the problem of not detecting on its own or even early enough revealed signs of Facebook’s further inability to manage Libra.
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