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Authors: Garima Ratna
Published by: Amity Research Centers
Published in: 2019
Length: 11 pages
Data source: Published sources

Abstract

Facebook's June 2019 announcement of its ambitious launch of a cryptocurrency by name Libra had stirred up a massive debate. Initially, many prominent financial players promised to support it but as time and analysis progressed; these players began to develop cold feet. A few even announced their withdrawal from the project. The reasons were the inherent dangers associated with cryptocurrencies as they were not centrally controlled and regulated by any established financial institution. Like any cryptocurrency, Libra was feared for its adverse impact on the financial systems of nations and also for its potential misuse by nefarious elements. Moreover, analysts doubted the strategic intent of the company behind the launch. In view of the data breach scandal of 2018, FB could hardly be trusted. Would more data be compromised? What would be the impact on the financial markets? What was FB's gain in the entire game plan?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
World/global
Country:
United States

Featured company

Facebook
Employees:
10000+
Type:
Public company
Industry:
Social media

About

Abstract

Facebook's June 2019 announcement of its ambitious launch of a cryptocurrency by name Libra had stirred up a massive debate. Initially, many prominent financial players promised to support it but as time and analysis progressed; these players began to develop cold feet. A few even announced their withdrawal from the project. The reasons were the inherent dangers associated with cryptocurrencies as they were not centrally controlled and regulated by any established financial institution. Like any cryptocurrency, Libra was feared for its adverse impact on the financial systems of nations and also for its potential misuse by nefarious elements. Moreover, analysts doubted the strategic intent of the company behind the launch. In view of the data breach scandal of 2018, FB could hardly be trusted. Would more data be compromised? What would be the impact on the financial markets? What was FB's gain in the entire game plan?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
World/global
Country:
United States

Featured company

Facebook
Employees:
10000+
Type:
Public company
Industry:
Social media

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