OPen Response PF.docx - Terrick Thompson Personal Finance Jepsen Open Response When you’re a big business in the market and you want to make something

Terrick Thompson Personal Finance Jepsen 11/11/19 Open Response When you’re a big business in the market and you want to make something as important as a digital currency U need approval. Not only to you need approval but you need trust. Facebook is looking to make a digital currency for people that don’t have a bank account. The challenges Facebook has with creating a digital currency are trust, expanding, and the law. The first obstacle Facebook is going to have is trust. Facebook must get trust from the government Before any of this can continue. Both political parties demanded to know why a company with massive market power and a scandal record want to be trusted. As one senator said, “like a toddler playing with matches, Facebook has burned down the house over and over again.” The second obstacle will be expanding. Facebooks original plan is to bring money transacting at a low cost to millions around the globe to people that don’t have a bank account. Facebook is promising

Unformatted text preview: the people low fees and high reassurance. Facebook says this could be a cheaper way to spend money across borders. The third and final obstacle they will have is the law. The law fears it will be misused by money launders and terrorist financiers. At a senate subcommittee hearing, their currency proposal faced skepticism from the trump administration. Trump tweeted in July that the new currency they are proposing “will have little standing or dependability. “The law is also trying to prevent a monopoly of a industry. In conclusion, the three obstacles that Facebook has to face in order to create their new currency is trust, expanding, and the law. The government believes that if they let this happen Facebook could potentially become a monopoly. This means they could end up driving everyone out of business. These businesses have been extinct from the market for about 50 years....
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