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Home / Business / Regulators have doubts about Facebook Cryptocurrency. So do their partners.

Regulators have doubts about Facebook Cryptocurrency. So do their partners.



The largest American cryptocurrency company, Coinbase, was one of Libras 27 original partners. However, when the partnership was announced internally, several Coinbase employees expressed concern that their company is merging with a giant company like Facebook with a spotty on issues that are important to cryptocurrency fans, such as privacy, two company employees said.

A Coinbase spokeswoman refused to comment.

Joe Lallouz, CEO of Bison Trails, another cryptocurrency company that joined Libra as a partner, said he was also skeptical when Facebook approached.

"My first reaction was: & # 39; You don't have the best track record from a privacy perspective," says Mr. Lallouz in an interview after the announcement. "Facebook's reputation for data security and being credible is against crypto ethos."

But Mr. Lallouz said Facebook had shown that it was serious about protecting the privacy of users, partly by ensuring that it did not have too much control over the project.

Facebook leaders said the design of Libra was inspired by the decentralized structure of Bitcoin, with the management given to the association, where Facebook will only have a voice out of potential 100 partners.

"They already give control and ownership over this, which is great," said Mr. Lallouz.

The parties are expected to meet in the coming months to write a charter that governs the association.

Facebook's history of partners has added caution. Playmaker Zynga, for example, accounted for a dramatic loss of revenue after Facebook relied on a close relationship with the company. Facebook has also taken on relationships with many publishers last year when it changed algorithms behind its news feed to emphasize news stories.

"This is a great opportunity, but there are many details that still need to be worked out," says lallouz.


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