This weekend, global investing platform eToro published a survey on public sentiment toward Facebook’s cryptocurrency project, Libra. While more than half of the respondents expressed doubts about Facebook’s management of their personal data, a surprising 17% indicated they would be willing to trust Facebook with their money the same way they trust their banks. In addition, while 58% of American adult internet users have heard of Bitcoin, Libra was able to gain 16% recognition since its launch a month ago — surpassing Ethereum (12%) since it went live in July 2015.
Michael Ou, Founder and CEO of CoolBitX, was invited to partake in closed-door FATF meetings in May to help inform their regulatory recommendations around the crypto market. Below, Michael shares his thoughts on Facebook’s cryptocurrency project Libra’s popularity and the difficulties it’ll face as a tech company in its first foray into financial services (and all the rules and regulations that come with it!)
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Michael Ou, Founder and CEO of CoolBitX, said:
“It is hugely encouraging that recognizable companies like Facebook are joining the crypto space. The fact that within just one month of it’s unveiling, 16% of respondents have heard of Libra showcases the power which mainstream companies have to bring knowledge of, and interest in, the merits of blockchain and cryptocurrencies to the masses. If just 16% of Facebook’s users were to enter into the cryptocurrency market, this would represent almost 381 million entries to the industry, an increase of almost 30% of those already active in the market.
“While the benefits of increased awareness of cryptocurrencies is certainly a potential boon to the space, we must remain cautious about Libra. Facebook itself has no experience operating as a financial institution and have yet to prove that it has learned from data security failures from past Facebook incidents. Ignoring the clear regulatory hurdles to Libra’s success — the potential privacy problems, should the Facebook servers be victim to an attack, would be catastrophic. Facebook will have to learn from its own past experiences before it is in a position to drive crypto adoption forward.”
About CoolBitX Technology Ltd.:
CoolBitX Technology Ltd. (CBX) is a Taiwan-based blockchain security company and creator of the first mobile hardware wallet for digital assets. CBX leverages the power of the blockchain to return personal data to the individual and foster a more secure and empowered future. Founded in 2014 by Michael Ou, CBX specializes in the manufacturing of U.S.-patented digital asset hardware and developing smart contract platforms for millions of global users. In 2018, CoolBitX introduced CoolWallet S, the world’s first credit card-sized hardware wallet the for Bitcoin, Ethereum, Litecoin, XRP, Bitcoin Cash, and ERC20 Tokens. For more information on CoolBitX, visit https://coolbitx.com/.