If we talk about cryptocurrency, new research from messaging app Viber suggests that 49% of consumers in the US and UK do not trust Facebook. Facebook may want to get stuck in this embryonic segment of the technology industry, but if users lose their trust in the company, you have to wonder if this will kill the potential of the cryptocurrency through association.
There are two interesting areas related to Facebook’s quest for cryptocurrency. First of all, many people will start asking what actually cryptocurrency is and what it does. And secondly, when we talk about money, many will start wondering if Facebook should be considered a trusted partner with its experience.
Starting with the definition of cryptocurrency, we aren’t expert in this, and few in the general public will also have a specific understanding. This lack of understanding creates anxiety and lack of trust, and the fact that it is largely unregulated simply combines this sense of nervousness.
This confusion also appears to be directed to governments and regulators; no one wanted to take ownership, and when the Swiss were supposed to take the initiative, the Swiss regulator seemed very confused. We have already seen the complications facing the world when a void in the regulatory landscape is formed and the crypto-wave appears to be moving in the same direction. Talking about the problems that arise during a regulatory gap, this leads us to the second interesting moment presented in this study.
In the UK, 49% of users have suggested that they will not trust Facebook when it comes to keeping the information with the new cryptocurrency scale. Only 4% said they would trust Facebook, and 28% did not make a decision. The numbers were remarkably similar to US users, but even less – 2.5% explicitly said they would trust Facebook.
Over the past 12-18 months, Facebook has destroyed the consumer’s trust in it and has done little to win it. Cambridge Analytics has a Facebook crash, although Facebook’s response to investigations and record-keeping since then has fueled even more of the consumer’s repugnant to the social media giant. To a large extent, the effects of this saga are in the past, but it has been damaging the reputation of Facebook.
Handling personal information is one, but the management of transactions and the processing of financial data are quite different. Facebook asks for a lot of trust and confidence with Libra’s performance. As previously mentioned, if Facebook tries to be the poster boy to embrace the concept of cryptocurrency in the masses, we just hope that its reputation doesn’t pollute a possibly very thrilling section.