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The cryptocurrency risk

Cryptos work because investors believe these have value. That trust is based on the hack proof nature of the blockchain. But what if the blockchain doesn't exist?

Facebook Libra
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A small toy figure stands on representations of virtual currency in front of the Libra logo in this illustration picture. Photo: Reuters

Devangshu Datta
Facebook's cryptocurrency initiative, Libra, is facing major resistance from regulators and central banks. The social media network has put together an independent foundation that includes some of the most respected names in the global finance industry. But regulators and central banks remain sceptical.
 
One of the big selling points for the original crypto, Bitcoin, was that it was based on the innovative concept of blockchain. This is an electronic ledger which can be viewed and validated by many people, while being very difficult to “hack”, and offers high levels of anonymity.
 
Libra also proposes to use a blockchain
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Sep 28 2019 | 12:17 AM IST

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