Facebook’s proposed cryptocurrency, Libra, is already being undermined by online scammers who are pretending to sell Libra ahead of its actual launch. The Washington Post reported that about a dozen fake sellers on Facebook and Instagram were using fake ads to convince users to try and buy Libra even though the cryptocurrency isn’t even available.
Facebook deleted a number of these fraudulent accounts after being contacted by Washington Post staff on Monday. At least one of the accounts included video footage of Facebook CEO Mark Zuckerberg accompanied by text claiming that Facebook was already selling 20 million Libra coins. Of course, Libra doesn’t have a monetary value right now because it hasn’t launched.
Libra executives have been working to earn the trust of government officials, several of whom have expressed skepticism that Facebook can regulate and secure its own digital currency. Facebook believes that Libra will help simplify international transactions in the constantly growing global economy. The company plans to use real currency to back Libra, unlike popular cryptocurrencies like Bitcoin.
Before it becomes available to the public, Facebook’s cryptocurrency will be subject to intense review to ensure that it complies with government regulations. Libra executive David Marcus appeared before two separate Congressional committees for hearings on Libra last week and said the cryptocurrency won’t launch until all regulatory concerns are addressed.