The Facebook Currency, 1

 
 
 
 

Vocabulary

effort	massive	block-chain
Libra	globally	participate
coin (2)	back (3)	handle (2)
scandal	point (3)	security (2)
app	respond	transaction
trust	support	ecosystem (2)
tough	string (2)	execute (2)
profit	oversee	stakeholder
route	protocol	decentralize
launch	currency	governance
volatile	regulator	dominance
goal (2)	lawmaker	optimistic
theft	stable (2)	money-laundering

 
 
 
 
 

Video

 

 
 
 
 

Transcript

Journalist One: How would this work in practice, Selena?

Selena Wang, Bloomberg News: So this is a massive effort, and the goal here is that it will be just like the US dollar, but used globally. As so-called “Libra” this currency is going to be a stable coin, which means that it is supported by government backed securities.

The point here is that it’s not going to be so volatile like Bitcoin, so it can be used for everyday transactions. So the point is you’re not only going to use it on Facebook, but to send money to friends or e-commerce in the app, but also you can use it outside of the Facebook ecosystem around the globe, so you can use it to buy a cup of coffee or something outside in the real world.

A big question here though, is whether or not Facebook has the trust of the people to be able to execute on something like this after a string of data scandals.

Do you want Facebook to be managing your money and your transactions as well?

But Facebook says that they’ve created this partnership, non-profit organization to oversee this, and that there are many stakeholders with a similar partnership here.

So listen to how David Marcos explains this.

 

 

David Marcus, Facebook Head of Calibra: We went to the blockchain route because we will have by the time we launched a hundred different global organizations that will participated in a governance of this new network and currency.

There are twenty-seven organizations right now and so we needed a way to decentralize governance because no one company should control a network that is basically a protocol for value on the internet.

 

 

News Anchor: How are regulators responding to this? Doesn’t seem like they’re too optimistic. What are their main concerns?

Selena Wang, Bloomberg News: There’s already been a firestorm of angry lawmakers. Their main concern here is that is Facebook trying to use its dominance in one industry, and use it to become dominant in another industry.

And the main concern from regulators is that digital currencies can promote theft or money-laundering. Some lawmakers have asked Facebook to stop development of this, until they have a better handle on how they can control and regulate this.

 

 

Questions

1. The Libra is a simple, straightforward currency. True or false?

2. Will the Libra be used only in the United States, or worldwide?

3. Can the Libra be used only on Facebook platforms, or for virtually any transaction? Give examples.

4. Everyone loves and trusts Facebook. Is this entirely right, mostly right, in the middle, yes and no, so-so, largely wrong or totally wrong? Why might many people be wary or suspicious?

5. According to David Marcus, Facebook official, will Facebook control and operate everything concerning the Libra currency, including storage and transactions?

6. The government and government officials are very enthusiastic and positive about the Libra currency. Is this correct or incorrect? Why might they be agitated?

7. Is the government blocking the development and launch of the Libra?

 

A. How do your friends make monetary transactions? Cash, check (cheque), credit card, debit card bankcard, smartphone app, bank wire transfers, other? Do different people pay differently?

B. Has this been changing over the years?

C. Everyone is enthusiastic and excited about the “Facebook” coin. Yes or no?

D. What might happen in the future?

E. What should governments and people do? Do they have the same agenda?