Facebook to launch Libra – are we geared for the challenge

probably the biggest obstacle to the global adoption of cryptocurrencies. According to the Libra white paper, its system will be able to process 1,000 transactions per second, much faster than Bitcoin, which can only process a handful per second.

Quoting David Marcus, who has overseen the Libra project for Facebook, he reveals that financial and social data will not be “commingled,” and that users can keep their digital wallets separate from their Facebook profiles. He also said that Libra’s involvement would be handled through a software ‘ wallet’ subsidiary called Calibra, registered in Switzerland. This company will store user funds and act as an initial on- ramp to the Libra coin.

Critics say that Libra’s marketing blast and its big razzamatazz song is simply a smokescreen to offset the firm’s appalling record on data privacy. Can Libra users demand that the currency be more decentralised and tamper-proofed?

Another obstacle is the resistance to Libra from major countries in Europe such as France and Germany, who want to block it – accusing it of challenging the ‘monetary sovereignty’ of governments.

Others say that Libra is a surreptitious plot to fish for our data, mostly targeting our financial and health status. Many are sceptical of future monopolistic abuse of the dominant position enjoyed by Facebook. Another hurdle is the tax leakage following millions of Libra transactions if and when this goes mainstream. If all goes well, perhaps Father Christmas will surprise us with gifts of Libra coin stuffed in our season’s gifts and hampers. gmm@pkfmalta.com

George Mangion is a senior partner of an audit and consultancy firm