WARNING: What’s Wrong with Facebook’s Cryptocurrency? EVERYTHING

Why the most distrusted name in social media running a “currency” will be a regulatory nightmare… and worse


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ScanMyPhotos Report — Facebook’s new cryptocurrency, Libra, explained

As a top expert on the payment card networks (sued and settled with them in the largest antitrust case in U.S. history) and on Facebook, this report by ScanMYPhotos explains why the ‘trust factor’ may halt Facebook from ever launching Libra Cryptocurrency.


While ScanMyPhotos has digitized 600 million pictures, we were among the first national brands to urge its customers not to upload any of their scanned photos to the photo-sharing platform. This was a tough decision as they indirectly built the demand for our business, as we are content providers. Most of the pictures we have digitized are uploaded by their users.


Facebook Didn’t Fix It’s Data Breaches, So We Are

Why Not Upload Pictures to Facebook


The new Libra Coin is heading towards the same disaster as Facebook’s past odious reputation for privacy breaches and chaos on its social media and photo-sharing platform.



June 25, 2019, NYT excerpt from journalists Nathaniel Popper who covers finance and technology for The New York Times:


“One of the biggest selling points of Facebook’s ambitious plans for its new cryptocurrency, Libra, was that the social media company had 27 partners, including prominent outfits like Visa, Mastercard, and Uber, helping out on the project.”


“But some of those partners are approaching Libra warily. They signed nonbinding agreements to join the effort partly because they knew they weren’t obliged to use or promote the digital token and could easily back out if they didn’t like where it was going, said executives at seven of those companies, who spoke on the condition of anonymity because of the sensitivity of the negotiations.”



https://twitter.com/ScanMyPhotos/status/1143683399757881344


1) Facebook wants this to happen to get more data to be used for ad targeting


2) Even because Facebook won’t be directly running the wallet app, there will be intense volatility as it is not regulated by currencies and even the U.S. will not permit it to operate in the states



3) The volatility and lack of trust are why the cryptocurrency is under such fire by government’s worldwide — with Facebook’s reputation it can only get worse. Think of an alcoholic running a liqueur store.


Excerpt by Paul Vigna at The Wall Street Journal:


Lawmakers Push for New Bitcoin Rules. Some legislators see a competitive advantage in fostering cryptocurrencies, the blockchain sector. Read More.


fbcoin2 300x228 - WARNING: What's Wrong with Facebook's Cryptocurrency? EVERYTHINGKey points why Facebook’s digital currency must never happen:


  • If Facebook did with photos what they are planning to do with cryptocurrency, WATCH OUT!;
  • Why Not Upload Pictures to Facebook;
  • While Facebook won’t directly;
  • run its wallet app, the cryptocurrency is without oversight and regulatory compliance that stabilizes regular currencies like the U.S. dollar;
  • This is like a casino, where chips replace money, but real currency needs to be converted into “Facebook money” which their subordinates manage;
  • The burden for LibraCoin is keeping it safe, and nobody has a worse record of keeping data safe than Facebook;
  • The Libra Blockchain is prone to hacking on a level that eclipses every past Facebook breach;
  • Congress has not reviewed the plan and there are no regulations as there are with currencies;
  • It is the wild-wild west where anything can go wrong;
  • While central banks create a market and stability for currencies, cryptocurrencies have a history of alarming price swings;
  • Just like with the credit card associations (MasterCard and Visa)  the Libra Association will face even bigger trust issues, it can use the data collected in any way it desires;
  • Just as Facebook is a threat to protecting its user’s privacy, its proposed Libra Coin is a clear and present threat to the global financial system;
  • While Libra’s value is tied to government-issued currency, the fact that it will not operate in the U.S. speaks volumes about its viability.


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NEWS: $6.2 Billion Settlement Win, Statement by ScanMyPhotos

Welcome. Some personal news that is now national. If you’ve been following our advocacy over the past 13-years as we led the challenge against the banks and credit card companies over their fees, it is over. Details follow on the $6.2 billion merchant interchange fees settlement.


Visa, Mastercard $6.2 Billion Settlement Announced



ScanMyPhotos.com Corporate Headquarters in Irvine, CAThis multi-billion dollar victory involved many and will help millions. Just as Neil Armstrong’s giant leap was much more than about one person. His legacy was forged from decades of toil by many. This moment captures a similar degree of celebration. It embraces the shared lesson that one person with an idea to advocate on behalf of every American business and consumer can create profound changes. Together, many helped fix a broken system and recover billions of dollars for millions of class members.


The justification for credit card fees had become as antiquated as the technology used by the Apollo lunar mission. Those 1960’s designed manual credit card imprinters and thick carbon copy receipts where the basis for merchant interchange fees. What used to be fee-based became greed-based. Just as rotary-dial pay phones turned into smartphones, and Apollo morphed into SpaceX, this settlement is also a giant leap towards a fair payment system.



IMG 4107 - NEWS: $6.2 Billion Settlement Win, Statement by ScanMyPhotos When ScanMyPhotos.com, as a lead plaintiff, filed the federal litigation against the banks and credit card companies back in 2005, our concerns targeted price-fixing and anti-competitive credit card merchant fees. We knew antitrust cases can go on for many years and require extraordinary efforts. However, we never thought the case would go on for 13-years and result in massive structural transformations to the credit card industry.


Like millions of businesses, we knew there were problems within the credit card industry and aware that in some foreign countries, including Australia, governments had investigated potential anti-competitive activities in the credit card market. Other countries had begun to take steps to regulate that activity.


But, given the different politics in the United States, it was unrealistic to expect that we could persuade the government to step in and regulate interchange fees. This is how the banks take a hefty cut off the top on every credit and debit card transaction.


The fact that ScanMyPhotos was able to do so as part of a lobbying team to persuade Congress to enact the Durbin Amendment—setting limits on debit card interchange rates in 2010—was also a tribute to the hard work by many. Having often traveled to New York City and Washington D.C, our trips substantially raised the profile of this issue on Capitol Hill and with the courts.


IMG 4108 - NEWS: $6.2 Billion Settlement Win, Statement by ScanMyPhotosWhen fellow merchants ask why we included the big banks as defendants in the litigation, we explained that once caught, the infamous bank robber, Willie Sutton from more than a century ago, was asked by a reporter, “Willie, why do you rob banks? And he replied, “Because that is where the money is.”


The reason we sued the banks along with Visa and MasterCard was we knew that the payment card networks, which had been created and controlled by the banks, could never escape from the clutches of the banks unless all faced the same kind of litigation risk that the networks did.


Shortly after the litigation commenced, Visa and Mastercard separated from the banks by going public. Both formed an independent board of directors. Prior, the same banks controlled both and fixed prices between the two card associations, which were effectively one.


On Tuesday, a $6.2 billion settlement was reached. Follow along as updates occur.


A sampling of news profiles and prior media insights:


Digital Transactions
Los Angeles Times
Yahoo News
Bloomberg News
Inc Magazine


Now, back to scanning pictures.

 

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ScanMyPhotos.com Strikes Meteoric Blow, Dismantling Bank Goliaths #SwipeFees

To the millions of merchants across the nation who have been closely following the credit card merchant interchange antitrust battle against MasterCard, Visa, and major banks since 2005, you are familiar with the lead plaintiff role undertaken by Mitch Goldstone and ScanMyPhotos.com. During the historic $7.25 billion settlement, announced in 2012, there continues to be significant news.

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Credit Union Times Credit Card Interchange Profile on Mitch Goldstone/ScanMyPhotos.com

 

 

Follow along as the CreditUnion Times profiled the David vs. Goliath fight with this update.

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