VGS corporate lawyers
London

+44 2039665531

Milan

+39 0250043613

  • Home
  • Who we are
  • Practice Areas
    • Company law
      • Setting up a company in Italy
      • Corporate governance
      • Bankruptcy
    • Debt Recovery & Credit Collection
    • Arbitration and Mediation
    • Contracts
      • Acquisition Finance
    • White collar crimes
    • Data protection and GDPR
    • Professional Negligence
      • Medical Malpractice
  • People
    • Avv. Valentina Giarrusso
    • Avv. Flavia Di Pilla
    • Avv. Silvia Pellegrini
    • Avv. Giuseppe Ganci
    • Avv. Valentina Improta
    • Dr. Fabrizio Di Patti
    • Avv. Salvatore Fasciana
    • Dr. Yasine Ajlane
  • News & Blog

Facebook and its new monetary role: Libra impact and related concerns

  • by VGS' Editorial Board
  • 11 July 2019
  • Comments (0)

Facebook has recently announced its new cryptocurrency (Libra). Libra is backed by 28 multinationals like PayPal, Mastercard, Visa, Uber, et cetera. It has been claimed that Libra will be able to solve the typical issue of cross-border payments, which still take three to five working days to be completed. Moreover, Libra is an opportunity for those 1.7 Billion of individuals who still do not have access to financial system with no access to a traditional bank.

Libra is a blockchains-based system with a unique set of properties. These include “distributed governance”, which ensure that no single entity may control the network; open access, which allow anybody with an Internet connection to participate; and security through cryptography. In particular, Libra is made up of three elements:

  1. Built on a reliable, secure, and scalable blockchain;
  2. Libra is backed by a reserve of assets that provide it with intrinsic value;
  3. Libra is governed by the independent Libra Association that is in charge of the evolution of the ecosystem.

The unveiling of Libra comes only three years after Cambridge Analytica scandal, which saw personal data of millions of users manipulated for political purposes. Since then, Facebook has experienced numerous privacy scandals calling in question the manners Facebook handles its user data. In such plagued context, Libra is seeking to find its position as a new global currency jeopardising future status and privacy of private financial information. Doing so, Facebook is seeking to increase its monopolistic power on personal data by accessing information about users purchasing habits while building spending patterns of its users. 

Notwithstanding aforementioned privacy concerns, Libra seems to target users in developing world by providing financial stability to population with no access to financial services and banking advantages. However, the real risk of a political and financial catastrophe is more likely in those countries where Libra would be most useful. In fact, developing countries may not be able to control Libra and its monetary policy.  

For further information please contact us or leave your contact details in the Contact Form and you will be contacted within 24 hours.

  • Data Protection
  • GDPR
  • Share:
Previous Article: The Internet of Toys – Safety and Security considerations
Next Article Facial Recognition and privacy: a dystopic approach

Practice Areas

  • Company law
    • Bankruptcy
  • Debt Recovery & Credit Collection
  • Arbitration and Mediation
  • Contracts
    • Acquisition Finance
  • White collar crimes
  • Data protection and GDPR
  • Professional Negligence
    • Medical Malpractice

Free Consultation

    Tags

    ADR Airbnb Arbitration Auditing Brexit Company Law Company Shares Consent Contracts Cookies Copyright Coronavirus Data DataProcessing Data Protection DPO European Union Eviction Free Title GDPR HealtData HouseHold Agreements Italian Bankruptcy Law Italian Business Italian Company Law Italian Corporate Law Italian Criminal Law Italian Debt Recovery Italian Entry Visa Italian Incorporation Italian Intellectual Property Law Italian Legal Advice Italian Privacy Italian Tax Legal guide MedialTreatment Mediation Partnership Patient Personal Data Privacy Processing Research Warranty White Collar Crimes

    Social Links

    • Facebook
    • Instagram
    • LinkedIn

    See also:

    VGS Lawyers

    VGS - Family Lawyers

    © Copyright 2022 | VGS Corporate Lawyers | All right reserved.