First impressions on Libra: enthusiasm prevails, concerns remain

Facebook unveiled its new blockchain-based digital currency network Libra on Tuesday, drawing skepticism from critics wary of the social media giant's clout, and awestruck enthusiasm from startup entrepreneurs who believe the move will help validate the larger world of blockchain and cryptocurrency.

"The launch of Libra is a huge boon for both the digital currency and blockchain industries, with a quite a small number of players involved compared to 2.7 billion Facebook users," said Jiang Changhao, chief technology officer of Cobo, a Beijing-based company that offers leading cryptocurrency wallet solution Cobo Wallet.

Jiang also bet high on Facebook Libra and calls it a gobal revolution in the financial market. " The future of Libra seems to be bright as it will bring millions of people who do not use bank accounts into the financial system. It will allow making a transaction without the need for a bank account both swiftly and legally."

"Importantly, Libra might be welcomed in developing countries, which are open to alternative currencies, Jiang added. "At present, in countries in Africa and Latin America, many people do not have bank accounts, but it is easy to have access to Internet and smartphone."

Facebook's ambitious plan has the support of Visa, Uber, Andreessen Horowitz, and other industry leaders. Libra will launch in 2020 and allow people to make purchases using Facebook's new Calibra wallet or via its Messenger and WhatsApp platforms. Calibra is also the name of Facebook's new subsidiary company responsible for its crypto-related projects.

Despite abundant positive potentials, Libra is not free from concerns and challenges.

The launch of Libra comes at a turbulent time for Facebook, following just over a year after the Cambridge Analytica scandal exposed the private information of tens of millions of its users. Since then, the tech giant has been plagued by a series of data breaches that has fundamentally undermined trust in Facebook and its accompanying apps.

In an attempt to address potential security concerns about the new cryptocurrency venture, Facebook said that "Calibra customers' account information and financial data will not be used to improve ad targeting on the Facebook family of products.

On Wednesday, Facebook Chief Operating Officer Sheryl Sandberg said that the company's planned cryptocurrency coin is a "long way from launch," but policy makers are already gearing up to scrutinize it with US lawmakers planning to hold a hearing next month.

A Facebook spokesperson said the company looks forward to answering lawmakers' questions "as this process moves forward."