PayPal ceases supporting Facebook’s Libra
PayPal has withdrawn its pledged support from the planned Libra, a cryptocurrency that is currently being developed by Facebook. The project was with the support of an extensive number of corporate associates. For example, Visa, Mastercard, Swipe, and Uber have invested $10 million each into Libra. In as much as it may appear to be a far-stretched effort, Facebook directors are envisioning a cryptocurrency being an innovative commercial framework that will not be governed by the influence of dealers in financial institutions. Libra is made for consumers that already have bank accounts. The directors are attempting to make the app accessible by people who do not have one. The directors aim to decrease all chances of volatility that other competitor experience. Also, they predict that the easy to use business will attract attention of people from other countries as well. This project would be beneficial because it would create a new, safe, cheaper, and easy way of currency exchanging and storing.
The Libra project has been under development by Facebook for more than 12 months and the project was made public in June. The proposed cryptocurrency is intended to be liberally used for trade through the various platforms such as Whatsapp and Messenger, thuse will function globally. Facebook had previously mentioned that over 27 corporate associates like PayPal, Uber, Mastercard, etc. had promised to fund the project. These businesses benefit from Libra by being able to monitor Facebooks payment ambitions as well as gain attention from the popularity of the new cryptocurrency. Some of the corporate associates have started to become worried about the project and are taking a lot of precautions.
Politicians have aired their contradictory opinions to the project as there’s evidence that Facebook didn’t get a lesson after its previous data confidentiality issues. They are still addressing concerns with users ability to commit fraud and money laundering. The unstableness causes the contradiction from neighboring companies of whether or not Libra can provide safe and stable protection of users money. Additionally, a number of those corporate associates that pledged to contribute to the project have hastily dissociated themselves from the project through agreeing to deals that they can easily fall out of in case they aren’t satisfied with its development. This was the assessment from a number of the companies that were interviewed in June by The New York Times magazine.
Associating businesses have raised their concerns about Facebooks
new cryptocurrency. They question the safety of the peoples money and information, how it will be compared to competitors, and how efficient the directors are at fixing these problems. However, Facebook’s boss Mark Zuckerburg mentioned that he will not cease to dedicate his efforts to the realization of the Libra project although he added that the launch of the Libra coins will delay till a little later. The company will work to establish ATM-like terminals that are beneficial to users, work with banks and firms like Western Union to create stable currency transfers across the world, and ensure the security of users and investing companies.
DogLover, you didn’t ask for particular feedback, so I’ll concentrate on fundamental items of argument and purpose. You’ll want to strengthen the basics before you spend time on the particulars.
P1. You don’t establish any urgency in your first paragraph, DogLover. We don’t know whether to care about Libra or not based on your claims.
—PayPal has withdrawn its support (Should we care? Does it mean the project will fail? Should we care? Does it mean Libra was poorly designed or not beneficial? Should we care?)
—The project had the support of many “corporate associates” (What are corporate associates? Are they companies Facebook needed as partners? Should we care? Does the author mean there are plenty of associates left over to cover for the loss of PayPal?)
—Libra will not be governed by “dealers in financial institutions.” (What does this mean? That Libra will circulate without the need for banks? That Libra will not be subject to regulations? That Libra will be immune from interference by countries entirely? Should we care? Did PayPal’s withdrawal put Libra’s future at risk? Should we care?)
P2. Here you establish that the project has/had a lot of “associates.” We’re still not sure what they are (One possibility is that they are companies that agreed in advance to permit Libra to be used as a currency for payment on their networks. That would be helpful to know. Is that the case?) or why they matter, but you are hinting that they’re wary collaborators. (Should we care?)
P3. We’ll need to know what “contradictory opinions” means, DogLover. They could be as innocent as “some think the currency will work / others think it will not be embraced by shoppers” or as judgmental as “some think Libra users will be safe / others think Facebook will exploit or fail to protect their users’ money.”
All this paragraph tells us is that for some unexplained reason, associates are wary and won’t fully commit. (Pretty much the same information as in P2.)
P4. Your conclusion makes clear you don’t have an editorial point of view here, DogLover. Let me suggest a few you could pursue:
1. Recent exposures of Facebook’s failure to protect its users’ data are troubling to companies that once expressed interest in adopting the Libra cryptocurrency. We understand their concern and share it. Facebook can’t be trusted to protect our money.
2. Recent renunciations of Libra by Facebook “associates” indicate the value of trust in any currency. The dollar has the support of the US government. But the Libra will be backed by . . . what exactly? Currencies can only survive if their users trust whoever mints them.
3. Would you trust this man with your bank account? Mark Zuckerberg cannot be surprised that Libra has been experiencing defections of its corporate “associates.” Every time he goes to Congress to apologize for another data breach, he tarnishes the faith in his brand. Would you accept a coin that had his face on it?
I hope this will help you find an angle, DogLover. You need to transform this informational essay into an expression of your godlike opinion and take a stand.