Since the realm of cryptocurrency has been introduced to the world, new instruments are being created to compete in the market. Bitcoin, being the very first digital currency ever created way back in 2009 has now a lot of competitors. Etherium, Litecoin, Dash, Monero, Ripple, you name them. It is undeniable that the number of cryptocurrencies has grown drastically over the years. This is because of the increasing number of people who are becoming interested in investing in cryptocurrency as well. Additionally, cryptocurrencies, in general, provide wide variety of benefits to its users and investors. A lot of experts also predict that our financial system will turn into digital practice in the future.
In relation, just recently, Facebook announced that it will be setting to enter the world of cryptocurrency in a huge play. This big social network plans on introducing a digital cryptocurrency that will be called Libra. This has been based from different articles and reports of some media organization. The stablecoin of Facebook which will be monitored and organized to a government issued currencies basket to get rid of the changing prices in the market, is backed by several and different investors like Mastercard, Visa, Uber, PayPal and other partners like Booking.com and Stripe. But despite the overwhelming news, some people are still hesitant towards the digital currency as this might face a lot of challenges like security, safety, and monetization. Facebook should also convey to possible users why the social network digital currency is worth using provided that Facebook has been facing privacy scandals over the last 18 months.
That being said, it is important that the Facebook management should address first its underlying issues and at the same time, should find effective and convincing ways on how they can encourage people not only to use but also to trust Libra. As some recommendations, here are some of the things that Facebook must get right with its Libra cryptocurrency.
Make People Understand that Facebook is entering the real of digital currency
One of the very first things that Facebook must prioritize in encouraging people to accept Libra is to effectively explain to skeptics their honest and true reasons why it is launching a new digital cryptocurrency. Additionally, the social network must also communicate well the value proposition of the crypytocurrency to its potential investors and users.
According to the founder and CEO or Vertalo, a registry stakeholder and compliance platform for regulated security token offering, Fcaebook has to have the power to convince people by answering questions such as the need for a new cryptocurrency, its value and benefits and it’s essential contribution to the financial industry. Facebook has not yet released a statement about their purpose of introducing a new instrument to the market. Hence, this provides a big question to people especially to potential users and investors.
Convince users that Libra is secure and safe
One of the doubts of potential users is the safety and security of the new cryptocurrency. While the branding of Facebook can be a positive factor, the social network should not underestimate of the people’s intelligent way of thinking. Yes, it is true that Facebook is one of the most trusted and popular brands in the entire world but it is also not a secret that the company has taken a beating over the last three or four years since the presidential election in US in the year 2016 where Russia use the social media to meddle the election result. This created a big issue in Facebook and made them faced legal hearings.
Furthermore, Facebook has also raised red flags with the government over the last years for the lapses in the aspect of data privacy. These lapses include the Cambridge Analytica scandal which revealed that the said institution obtained access to the information of over 87 M Facebook users without their authorization.
A digital wallet is an important part of a digital currency system as it allows users to send, store and receive cryptocurrencies. Hence, Facebook must also utilize the same system. With some wallets that are easier to use compared to others, Facebook must create a new wallet that provides more convenience and ease to users. In this way, they can easily gain not just the interest but also the trust of their users. Providing users an efficient tool to manage their digital currencies will make Libra more reliable and trusted.
Overall, Facebook must never put their confidence on their popularity and widely recognized brand. They need to consider that there are several factors that they need to consider for them to know how to get bitcoins in the competition, put their name forward and provide quality and efficient service and benefits to the cryptocurrency community.