Data Security Concerns Ahead of Facebook’s Libra Cryptocurrency
June 20, 2019 9:10 amCryptocurrency is a developing technology that’s been transforming the markets. For Facebook, it’s a project that’s long been under wraps.
Facebook’s new mysterious cryptocurrency named Libra is part of the company’s new push toward digital finance. But with Facebook’s data privacy and transparency issues over the last couple of years, can users trust Facebook to have secure digital currency?
Facebook’s Data Security Problem
Let’s start with the whirlwind couple of years that Facebook has had.
Beginning March 19, 2018, Facebook shared the data of more than 87 million of its 2.38 billion users with the now-controversial political consulting firm Cambridge Analytica. This violated the trust of millions, which left CEO Mark Zuckerberg and other management scrambling for the rest of 2018 to regain that trust.
Then the hits kept coming for Facebook when it experienced two large-scale data breaches. On September 25, 2018, the data of 50 million Facebook users was breached in just one day. Then, in April 2019, it was revealed that the email contacts of 1.5 million users had been “unintentionally uploaded” to Facebook.
Cryptocurrency Security Standards
Cryptocurrency technology first emerged with Bitcoin, a payment network released in 2009 to bring financial services to the digital age. As this digital currency continued to develop and additional technologies were created, additional security measures were needed to keep the technology in check. The Cryptocurrency Security Standard (CCSS) was created for this very purpose.
Apart from security concerns, governments are concerned about the way Facebook’s Libra could affect banking and financial services. Russia, for example, has already announced that Libra will be blocked country-wide. As more details about Libra develop, other countries could follow suit and block the technology.
The Bottom Line
Cryptocurrencies have become widely used because of user trust and comprehensive data security. Questions to consider: Will other countries allow the use of Libra? Will Facebook users trust the company’s security measures enough to try the technology?
At Issuer Direct, we’re just as interested as you are. We’ll keep you informed.
Facebook’s new mysterious cryptocurrency named Libra is part of the company’s new push toward digital finance. But with Facebook’s data privacy and transparency issues over the last couple of years, can users trust Facebook to have secure digital currency?
Facebook’s Data Security Problem
Let’s start with the whirlwind couple of years that Facebook has had.
Beginning March 19, 2018, Facebook shared the data of more than 87 million of its 2.38 billion users with the now-controversial political consulting firm Cambridge Analytica. This violated the trust of millions, which left CEO Mark Zuckerberg and other management scrambling for the rest of 2018 to regain that trust.
Then the hits kept coming for Facebook when it experienced two large-scale data breaches. On September 25, 2018, the data of 50 million Facebook users was breached in just one day. Then, in April 2019, it was revealed that the email contacts of 1.5 million users had been “unintentionally uploaded” to Facebook.
Cryptocurrency Security Standards
Cryptocurrency technology first emerged with Bitcoin, a payment network released in 2009 to bring financial services to the digital age. As this digital currency continued to develop and additional technologies were created, additional security measures were needed to keep the technology in check. The Cryptocurrency Security Standard (CCSS) was created for this very purpose.
Apart from security concerns, governments are concerned about the way Facebook’s Libra could affect banking and financial services. Russia, for example, has already announced that Libra will be blocked country-wide. As more details about Libra develop, other countries could follow suit and block the technology.
The Bottom Line
Cryptocurrencies have become widely used because of user trust and comprehensive data security. Questions to consider: Will other countries allow the use of Libra? Will Facebook users trust the company’s security measures enough to try the technology?
At Issuer Direct, we’re just as interested as you are. We’ll keep you informed.