Security

Russian Hack of Elections System Was Far-Reaching, Senate Intel Committee Report Finds (npr.org) 365

An anonymous reader quotes a report from The New York Times: The Senate Intelligence Committee concluded Thursday that election systems in all 50 states were targeted by Russia in 2016 (Warning: source may be paywalled; alternative source), largely undetected by the states and federal officials at the time, but at the demand of American intelligence agencies the committee was forced to redact its findings so heavily that key lessons for the 2020 election are blacked out. Even key findings at the beginning of the report were heavily redacted. It concluded that while there is no evidence that any votes were changed in actual voting machines, "Russian cyberactors were in a position to delete or change voter data" in the Illinois voter database. The committee found no evidence that they did so. While the report is not directly critical of either American intelligence agencies or the states, it described what amounted to a cascading intelligence failure, in which the scope of the Russian effort was underestimated, warnings to the states were too muted, and state officials either underreacted or, in some cases, resisted federal efforts to offer help.
Moon

Study Suggests Much More Water On the Moon Than Thought (phys.org) 71

davidwr writes: Two days after the 50th anniversary of the first moon landing, the journal Nature Geoscience published a paper claiming there may be "thick ice deposits inside permanently shadowed simple craters" on the moon. The paper compares craters on the moon to similar craters on Mercury that are known to contain thick ice deposits. While the article is paywalled, the dataset, code, references, and supplemental information are available on the abstract's page. If the researchers' ideas prove correct, it would mean that there are millions of tons of ice on the surface of the moon -- far more than has been thought by most moon scientists.
Businesses

Apple Dominates App Store Search Results, Thwarting Competitors (wsj.com) 44

Apple's mobile apps routinely appear first in search results ahead of competitors in its App Store, a powerful advantage that skirts some of the company's rules on such rankings, according to a Wall Street Journal analysis. From the report: The company's apps ranked first in more than 60% of basic searches, such as for "maps," [Editor's note: the link may be paywalled; alternative source] the analysis showed. Apple apps that generate revenue through subscriptions or sales, like Music or Books, showed up first in 95% of searches related to those apps. This dominance gives the company an upper hand in a marketplace that generates $50 billion in annual spending. Services revenue linked to the performance of apps is at the center of Apple's strategy to diversify its profits as iPhone sales wane. While many of Apple's products are undoubtedly popular, they are held to a different standard by the App Store. Apple tells developers that downloads, user reviews and ratings are factors that influence search results. Yet more than two dozen of Apple's apps come pre-installed on iPhones and are shielded from reviews and ratings.

[...] Audiobooks.com, an RBmedia company, largely held the No. 1 ranking in "audiobooks" searches in the App Store for nearly two years. Then last September it was unseated by Apple Books. The Apple app had only recently begun marketing audiobooks directly for the first time. "It was literally overnight," said Ian Small, Audiobooks.com's general manager. He said the change triggered a 25% decline in Audiobooks.com's daily app downloads. [...] Apple's role as both the creator of the App Store's search engine and the beneficiary of its results has rankled developers. They contend Apple is essentially pinning its apps No. 1, compelling anyone seeking alternatives to consider Apple apps first. [...] Phillip Shoemaker, who led the App Store review process until 2016, said Apple executives were aware of Podcasts' poor ratings. Around 2015, his team proposed to senior executives that it purge all apps rated lower than two stars to ensure overall quality. "That would kill our Podcasts app," an Apple executive said, according to Mr. Shoemaker, who has advised some independent apps on the App Store review process since leaving Apple. The proposal was eventually rejected, Mr. Shoemaker said.

Communications

New York City To Consider Banning Sale of Cellphone Location Data (nytimes.com) 39

Telecommunications firms and mobile-based apps make billions of dollars per year by selling customer location data to marketers and other businesses, offering a vast window into the whereabouts of cellphone and app users, often without their knowledge. That practice, which has come under increasing scrutiny and criticism in recent years, is now the subject of proposed legislation in New York [Editor's note: the link may be paywalled; alternative source]. If passed, it is believed that the city would become the first to ban the sale of geolocation data to third parties. From a report: The bill, which will be introduced on Tuesday, would make it illegal for cellphone companies and mobile app developers to share location data gathered while a customer's mobile device is within the five boroughs. Cellphone companies and mobile apps collect detailed geolocation data of their users and then sell that information to legitimate companies such as digital marketers, roadside emergency assistance services, retail advertisers, hedge funds or -- in the case of a class-action lawsuit filed against AT&T -- bounty hunters. "The average person has no idea they are vulnerable to this," said Councilman Justin L. Brannan, a Brooklyn Democrat who is introducing the bill. "We are concerned by the fact that someone can sign up for cell service and their data can wind up in the hands of five different companies."
Security

NSO Spyware 'Targets Big Tech Cloud Services' (ft.com) 27

The Israeli company whose spyware hacked WhatsApp has told buyers its technology can surreptitiously scrape all of an individual's data from the servers of Apple, Google, Facebook, Amazon and Microsoft, Financial Times reported on Friday. [Editor's note: the link may be paywalled; alternative source] From the report: NSO Group's flagship smartphone malware, nicknamed Pegasus, has for years been used by spy agencies and governments to harvest data from targeted individuals' smartphones. But it has now evolved to capture the much greater trove of information stored beyond the phone in the cloud, such as a full history of a target's location data, archived messages or photos, according to people who shared documents with the Financial Times and described a recent product demonstration. The documents raise difficult questions for Silicon Valley's technology giants, which are trusted by billions of users to keep critical personal information, corporate secrets and medical records safe from potential hackers. NSO denied promoting hacking or mass-surveillance tools for cloud services. However, it did not specifically deny that it had developed the capability described in the documents.
Music

Amazon Becomes Fastest-Growing Music Streaming Service (ft.com) 28

The music app that is adding subscribers to its service at the fastest rate is not Apple Music or Spotify or Google Music, it is Amazon, Financial Times reported this week [Editor's note: the link may be paywalled; alternative source]. From the report: The number of people subscribing to Amazon Music Unlimited has grown by about 70 per cent in the past year, according to people briefed on its performance. In April Amazon had more than 32m subscribers to all its music services including Unlimited and Prime Music. By contrast, Spotify, the world's largest streaming service with 100m subscribers, is growing at about 25 per cent a year. "Amazon is the dark horse [in music]," said Mark Mulligan, an analyst at Midia Research. "People don't pay as much attention to it [as to Apple and Spotify], but it's been hugely effective." [...] Amazon has gained momentum in recent months, propelled by its ubiquity with consumers and Alexa, its popular intelligent assistant, which can play music through voice commands issued to its wireless Echo speaker.
Facebook

FTC Approves Roughly $5 Billion Facebook Settlement (wsj.com) 65

The Federal Trade Commission voted this week to approve a roughly $5 billion settlement with Facebook over a long-running probe into the tech giant's privacy missteps, WSJ reported Friday, citing people familiar with the matter [Editor's note: the link may be paywalled; alternative source]. From the report: The 3-2 vote by FTC commissioners broke along party lines, with the Republican majority lining up to support the pact while Democratic commissioners objected, the people said. The matter has been moved to the Justice Department's civil division and it is unclear how long it will take to finalize, the person said. Justice Department reviews are part of the FTC's procedure but typically don't change the outcome of an FTC decision. A settlement is expected to include other government restrictions on how Facebook treats user privacy. The additional terms of the settlement couldn't immediately be learned. An FTC spokeswoman declined to comment, as did a Facebook spokesman. Facebook said April 24 that it was expecting to pay up to $5 billion to settle the probe. A resolution was bogged down by a split between Republicans and Democrats on the FTC, with the Democrats pushing for tougher oversight of the social-media giant.
Businesses

The Fish Is Boneless. (Fishless, Too.) (nytimes.com) 108

First, there was the meatless burger. Soon we may have fishless fish. From a report: Impossible Foods, the California company behind the meatless Impossible Whopper now available at Burger King, is joining a crowded field of food companies developing alternatives to traditional seafood with plant-based recipes or laboratory techniques that allow scientists to grow fish from cells. So far, much of Impossible's work has focused on the biochemistry of fish flavor, which can be reproduced using heme, the same protein undergirding its meat formula [Editor's note: the link may be paywalled; alternative source], according to Pat Brown, the company's chief executive. Last month, Impossible's 124-person research and development team, which the company plans to increase to around 200 by the end of next year, produced an anchovy-flavored broth made from plants, he said. "It was being used to make paella," Mr. Brown said. "But you could use it to make Caesar dressing or something like that."

The fishless-fish project is part of Impossible's grand ambitions to devise tasty replacements for every animal-based food on the market by 2035. Whether that aim is achievable, either scientifically or financially, remains to be seen. But for now, Mr. Brown said, he's confident Impossible's plant-based beef recipe can be reconfigured to simulate a new source of protein. It's unclear whether consumers -- even those who eat meatless burgers -- will embrace fish alternatives. Those faux-beef products owe their success partly to the enthusiasm of so-called flexitarians, people who want to reduce their meat consumption without fully converting to vegetarianism, but flexitarians are not necessarily motivated by a desire to save the planet.

Television

Coming To a Streaming Service Near You: Shows Costing as Much as Big-Budget Movies (wsj.com) 81

As Walt Disney, AT&T's WarnerMedia and Apple prepare to enter the crowded streaming-entertainment market, they are racing to stand out with eye-catching shows that cost as much for a season as a big-budget movie [Editor's note: the link may be paywalled; alternative source]. From a report: These new services are hoping their planned television epics will capture the cultural conversation, like "Game of Thrones" did. They are also hoping to convince subscribers that their offerings are worth paying for in a market dominated by Netflix, HBO and Hulu. The competition is prompting newcomers to shell out between $8 million and $15 million an episode, significantly more than what the average TV show used to cost. For a single season, after including marketing and other expenses, the total can easily exceed $150 million -- or roughly what it costs to put a new "Spider-Man" movie in theaters nationwide.

When Netflix began making "House of Cards" in 2013 at $4.5 million an episode, it looked like a costly bet. Now, Disney has built intergalactic-desert landscapes for the "Star Wars" spinoff "The Mandalorian," whose cost for an episode approaches $15 million, according to people familiar with the matter. Amazon.com spent $250 million just for the rights to develop a "Lord of the Rings" series. Apple signed up "Aquaman" star Jason Momoa for its fantasy series "See," while Showtime has the videogame adaptation "Halo" and Warner Bros. prepares Frank Herbert's "Dune." With massive casts, exotic filming locations and copious special effects, budgets have ballooned to amounts once considered unfathomable for a TV show. One driving factor, executives say, is that high-profile TV shows are offered up next to theatrical films available to stream on the same service, so original programming can't risk looking like B-material next to the movies.

Social Networks

LinkedIn and the Art of Boastful Self-Promotion (ft.com) 52

Harry Barnes runs a Twitter account called The State of LinkedIn with more than 100,000 followers. On it, he tweets a curated selection of the most egotistical, self-unaware, jargon-ridden posts from LinkedIn members [Editor's note: the link may be paywalled]. From a report: Recent gems range from the boastful "You call it luck, I call it 80 hours a week", to the baffling "How easy is it to hire me? I interviewed myself", as well as the awful-wonderful morning routine which begins "I wake up. Instantly. From the fogginess of dreams, to the readiness of full consciousness..." Humble brags, including Mr Barnes's favourite, in which a man is pictured playing pool while a supercar just happens to be parked in the background, also feature regularly. Mr Barnes, who has worked in social media but runs the account as a hobby, says the idea is to poke fun at the ridiculous world of workplace self-promotion, rather than individuals. "All the content is sent to me," he says. "I don't trawl LinkedIn looking for it."

Mr Barnes is not the only one enjoying the lighter side of LinkedIn. There is also the @CrapOnLinkedIn Twitter feed and parody LinkedIn accounts, such as the "demotivational speaker" Mike Winnet. Unlike other social networks, however, humour is not the norm for LinkedIn, which has always been a more grown-up, professional place. For better or for worse, that may be changing.

Businesses

Need Customer Service For an App? Prepare To Lose Your Mind (wsj.com) 145

App-based services have made our lives easier in so many ways. But when things go awry, they offer few paths to real assistance [Editor's note: the link may be paywalled]. From a report: There's a trade-off between the speed of apps and their ability to provide timely help. Customer service isn't dead, it's just hiding very well, often under a maze of preset menu options that seem designed to make you want to chuck your phone out the window. I recently ordered a Lyft ride from the airport. As the driver loaded my bag into the trunk -- something he didn't seem happy about -- he started talking under his breath. I asked if he was talking to me. His eyes got wide, and he said no, he wasn't. Then he removed my bag and told me I had the wrong car. His license plate matched my app, but he said, "I'm not your ride, baby," before driving off.

Part of me was relieved. But to let Lyft know, I had to spend probably 20 minutes going through endless options for pre-written problems I didn't have. "Something happened during my ride" got me a drop-down menu with a bunch of inapt scenarios: "Demanding cash?" Nope. "Refusing my service animal?" Also no. Lyft can foresee these issues, but not "Acting unprofessional"? [...] Except for safety issues, there's no helpline to get a live person with Uber or Lyft. Ditto Spotify, Instagram and many other apps. Airbnb customer support has a phone number where actual humans answer. Instacart's app has an email address with a field to include details about your problem. It's also got a number you can ring 24/7.

AI

How AI Helped Improve Crowd Counting in Hong Kong Protests (nytimes.com) 43

K.K. Rebecca Lai, Jin Wu and Lingdong Huang, writing for the Times: Crowd estimates for Hong Kong's large pro-democracy protests have been a point of contention for years. The organizers and the police often release vastly divergent estimates. This year's annual pro-democracy protest on Monday, July 1, was no different. Organizers announced 550,000 people attended; the police said 190,000 people were there at the peak. But for the first time in the march's history, a group of researchers combined artificial intelligence and manual counting techniques to estimate the size of the crowd [Editor's note: the link may be paywalled], concluding that 265,000 people marched. The high density of the crowd and the moving nature of these protests make estimating the turnout very challenging. For more than a decade, groups have stationed teams along the route and manually counted the rate of people passing through to derive the total number of participants. Though the use of A.I. does not make the calculation definitive, the technology helps produce a more precise estimate because it uses computers to try to count every person.

Since 2003, Paul Yip, a social sciences professor at Hong Kong University, has been producing a count of the size of protests held annually on July 1, the anniversary of Hong Kong's 1997 handover from Britain to China. With the hopes of creating a more robust estimate this year, Mr. Yip teamed up with Edwin Chow from Texas State University and Raymond Wong from C&R Wise AI, a local technology company, to use artificial intelligence to count the crowd at the march. Using open source software, The New York Times developed a computer model to illustrate how artificial intelligence could be used to recognize people and objects moving within a video. Analyzing a short video clip recorded on Monday, The Times's model tried to detect people based on color and shape, and then tracked the figures as they moved across the screen. This method helps avoid double counting because the crowd generally flowed in one direction.

Hardware

Demand Grows For Tiny Phone Chargers Using 'New Silicon' (ft.com) 91

A tiny phone, tablet and laptop charger, the first to use gallium nitride rather than silicon chips, has seen sales four times greater than predicted [Editor's note: the link may be paywalled], prompting the Chinese company behind it to try to ramp up production. From a report: Anker, a Shenzhen-based company that specialises in computer and mobile phone accessories, unveiled a line of chargers using gallium nitride (GaN), which conducts electrons 1,000 times faster than silicon, in January. The use of GaN allowed Anker to virtually halve the size of its charger, while retaining full-speed charging. Another Chinese-owned company, RAVPower, has also started using GaN in its chargers. "Silicon limits have been pushed almost to the extreme," said Steven Yang, co-founder and chief executive of Anker. "But GaN is at [the next] phase."

The introduction of the new semiconductor into the consumer market came after a series of military and other commercial applications, in everything from electric vehicles to radar systems. Raytheon, the US defence group, said in 2017 that it had spent $300m researching GaN since 1999. Like some of its peers, it uses the material in its active electronically scanned array (AESA) radars, which are able to detect stealth fighters at long range. "Once the power technology is out of the box it will be widely adopted around the world and that means everyone can produce power-switching modules," said Stephen Bryen, a former deputy undersecretary of defence and senior fellow at the American Center for Democracy. "And that is what is used in the radars -- that's the nexus between commercial and military use."

Science

Scientists Took an MRI Scan of an Atom (nytimes.com) 49

The hospital technology, typically used to identify human ailments, captured perhaps the world's smallest magnetic resonance image. weiserfireman shares a report: Different microscopy techniques allow scientists to see the nucleotide-by-nucleotide genetic sequences in cells down to the resolution of a couple atoms as seen in an atomic force microscopy image. But scientists at the IBM Almaden Research Center in San Jose, Calif. and the Institute for Basic Sciences in Seoul, have taken imaging a step further, developing a new magnetic resonance imaging technique that provides unprecedented detail, right down to the individual atoms of a sample [Editor's note: the link may be paywalled; alternative source]. The technique relies on the same basic physics behind the M.R.I. scans that are done in hospitals. When doctors want to detect tumors, measure brain function or visualize the structure of joints, they employ huge M.R.I. machines, which apply a magnetic field across the human body. This temporarily disrupts the protons spinning in the nucleus of every atom in every cell. A subsequent, brief pulse of radio-frequency energy causes the protons to spin perpendicular to the pulse. Afterward, the protons return to their normal state, releasing energy that can be measured by sensors and made into an image.

But to gather enough diagnostic data, traditional hospital M.R.I.s must scan billions and billions of protons in a person's body, said Christopher Lutz, a physicist at IBM. So he and his colleagues decided to pack the power of an M.R.I. machine into the tip of another specialized instrument known as a scanning tunneling microscope to see if they could image individual atoms. The tip of a scanning tunneling microscope is just a few atoms wide. And it moves along the surface of a sample, it picks up details about the size and conformation of molecules. The researchers attached magnetized iron atoms to the tip, effectively combining scanning-tunneling microscope and M.R.I. technologies.

Businesses

Interns' Job Prospects Constrained By Noncompete Agreements (wsj.com) 179

Internships have long been an opportunity for inexperienced workers to try out different industries and build valuable contacts. For companies, it is a way to attract future talent. But increasingly interns are being asked to sign noncompete, nondisclosure and forced arbitration agreements, restrictions once reserved for higher-ranking employees [Editor's note: the link may be paywalled]. From a report: Advocates say legal covenants for interns help safeguard trade secrets such as customer lists in an era when it is easy to download information and share it, for instance on social media or with a competitor. But critics argue the agreements hamper young people's job opportunities and mobility even before they get a foot on the career ladder. [...] Ms. Dunne's [anecdote in the story] noncompete agreement stated that she couldn't work for a competitor in software or banking within 15 miles of Wilmington for a year after leaving TekMountain. Ms. Dunne said she was given the agreement on her first day. "I had no idea what I signed, they didn't explain it to me."

After leaving TekMountain, she did a separate three-month internship with nCino, a financial technology company in Wilmington. In a May 7 letter, TekMountain's parent, CastleBranch, laid out her obligations under the noncompete agreement, described the confidentiality of its proprietary information as "very serious," and asked for details about her relationship with nCino. Ms. Dunne said she didn't respond. The noncompete "eliminated a good portion of the companies in town in the industry I wanted to be in," said Ms. Dunne, who is relocating to the Washington, D.C., area for a new job. "I have to leave all of my friends behind and start over."

Earth

NASA Announces New Dragonfly Drone Mission To Explore Titan (sciencealert.com) 85

NASA announced Thursday that it is sending a drone-style quadcopter to Titan, Saturn's largest moon. Dragonfly, as the mission is called, will be capable of soaring across the skies of Titan and landing intermittently to take scientific measurements, studying the world's mysterious atmosphere and topography while searching for hints of life (Warning: source may be paywalled; alternative source) on the only world other than Earth in our solar system with standing liquid on its surface. The New York Times reports: The mission will be developed and led from the Applied Physics Laboratory at Johns Hopkins University in Laurel, Md. The spacecraft is scheduled to launch in 2026. Once at Titan in 2034, Dragonfly will have a life span of at least two-and-a-half years, with a battery that will be recharged with a radioactive power source between flights. Cameras on Dragonfly will stream images during flight, offering people on Earth a bird's-eye view of the Saturn moon. In addition to a camera, Dragonfly will carry an assortment of scientific instruments: spectrometers to study Titan's composition; a suite of meteorology sensors; and even a seismometer to detect titanquakes when it lands on the ground. Drills in the landing skids will collect samples of the Titan surface for onboard analysis.
Medicine

Risk For Dementia May Increase With Long-Term Use of Anticholinergics, Study Suggests (nytimes.com) 53

An anonymous reader quotes a report from The New York Times: A new study suggests that people who take a class of common medicines called anticholinergic drugs for several years may be more likely to develop dementia as they age (Warning: source may be paywalled; alternative source). Anticholinergic drugs include the antipsychotic clozapine; the bladder drug darifenacin (marketed as Enablex); the anti-nausea drug scopolamine; the bronchodilatoripratropium; the muscle relaxant tizanidine; antihistamines such as diphenhydramine (brand names include Benadryl), and antidepressants such as paroxetine (brand names include Paxil). These medications work by blocking a chemical called acetylcholine, which acts as a neurotransmitter and is involved in many nervous system functions including muscle movements, heart rate, the widening of blood vessels, respiratory functions and muscle contractions in the stomach during digestion.

The research, conducted by Carol Coupland, a professor of medical statistics in primary care at the University of Nottingham in England, and colleagues, evaluated anticholinergic drugs prescribed to nearly 285,000 people age 55 and older. About 59,000 of them had a diagnosis of dementia. The study found a 50 percent increased risk of dementia among people who used a strong anticholinergic drug daily for about three years within that 10-year period. The association was stronger for antidepressants, bladder drugs, antipsychotics and epilepsy medications, the study said. Researchers did not find any increased risk of dementia with antihistamines, bronchodilators, muscle relaxants or medications for stomach spasms or heart arrhythmias. The link between anticholinergic drugs was stronger for people diagnosed with dementia before they turned 80 and in people with vascular dementia compared to people with Alzheimer's disease, the authors reported.

China

US Considers Requiring 5G Equipment For Domestic Use Be Made Outside China (wsj.com) 92

The Trump administration is examining whether to require that next-generation 5G cellular equipment used in the U.S. be designed and manufactured outside China [Editor's note: the link may be paywalled; alternative source], WSJ reports, citing people familiar with the matter. The move could reshape global manufacturing and further fan tensions between the countries. From the report: A White House executive order last month to restrict some foreign-made networking gear and services due to cybersecurity concerns started a 150-day review of the U.S. telecommunications supply chain. As part of that review, U.S. officials are asking telecom-equipment manufacturers whether they can make and develop U.S.-bound hardware, which includes cellular-tower electronics as well as routers and switches, and software outside of China, the people said. The conversations are in early and informal stages, they said. The executive order calls for a list of proposed rules and regulations by the 150-day deadline, in October; so, any proposals may take months or years to adopt.

The proposals could force the biggest companies that sell equipment to U.S. wireless carriers, Finland's Nokia and Sweden's Ericsson, to move major operations out of China to service the U.S., which is the biggest market in the $250 billion-a-year global industry for telecom equipment and related services and infrastructure. There is no major U.S. manufacturer of cellular equipment. U.S. officials have long worried that Beijing could order Chinese engineers to insert security holes into technology made in China. They worry those security holes could be exploited for spying, or to remotely control or disable devices.

Mars

NASA Rover on Mars Detects Puff of Gas That Hints at Possibility of Life (nytimes.com) 117

The Curiosity mission's scientists picked up the signal this week, and are seeking additional readings from the red planet. From a report: Mars, it appears, is belching a large amount of a gas that could be a sign of microbes living on the planet today. [Editor's note: the link may be paywalled; alternative source.] In a measurement taken on last Wednesday, NASA's Curiosity rover discovered startlingly high amounts of methane in the Martian air, a gas that on Earth is usually produced by living things. The data arrived back on Earth on last Thursday, and by Friday in the week, scientists working on the mission were excitedly discussing the news, which has not yet been announced by NASA. "Given this surprising result, we've reorganized the weekend to run a follow-up experiment," Ashwin R. Vasavada, the project scientist for the mission, wrote to the science team in an email that was obtained by The Times.

The mission's controllers on Earth sent new instructions to the rover on Friday to follow up on the readings, bumping previously planned science work. The results of these observations are expected back on the ground later today. People have long been fascinated by the possibility of aliens on Mars. But NASA's Viking landers in the 1970s photographed a desolate landscape. Two decades later, planetary scientists thought Mars might have been warmer, wetter and more habitable in its youth some 4 billion years ago. Now, they are entertaining the notion that if life ever did arise on Mars, its microbial descendants could have migrated underground and persisted.

Facebook

Facebook Co-founder Chris Hughes Says Libra Will Empower Corporations and Weaken Developing Countries, Urges Global Regulators To Act Now (ft.com) 97

In May, Facebook co-founder Chris Hughes shocked many when he expressed grave concerns about Facebook's CEO, its business and its impact on the world. He went as far as suggesting that Facebook should be broken up. Two months later, Hughes has another interesting remark to share. He has warned that Facebook's new planned digital currency Libra would shift monetary power to corporate giants. [Editor's note: the link may be paywalled; alternative source.] In an op-ed he wrote today: If even modestly successful, Libra would hand over much of the control of monetary policy from central banks to these private companies, which also include Visa, Uber, and Vodafone. If global regulators don't act now, it could very soon be too late. I've been a cryptocurrency sceptic, believing that the instability and regulatory challenges are just too sizeable. But Libra is different because it is a "stablecoin", with a value pegged to a basket of currencies and other assets. Anyone, whether they use Facebook or not, can buy in with a local currency and cash back out at any time. Vital decisions about Libra's administration, security and underlying assets will be made by the Switzerland-based Libra Association -- essentially Facebook and its largely corporate partners. To avoid complaints that setting up this coin would give a single company dangerous powers, Facebook has smartly limited itself to a single vote on the commission.

That doesn't make the prospect of Libra's success any less frightening. This currency would insert a powerful new corporate layer of monetary control between central banks and individuals. Inevitably, these companies will put their private interests -- profits and influence -- ahead of public ones. [...] The Libra Association's goals specifically say that ability will encourage "decentralised forms of governance." In other words, Libra will disrupt and weaken nation states by enabling people to move out of unstable local currencies and into a currency denominated in dollars and euros and managed by corporations. The Libra Association promises to choose stable currencies and assets unlikely to suffer inflationary crises. The sponsors are right that a liquid, stable currency would be attractive to many in emerging markets. So attractive, in fact, that if enough people trade out of their local currencies, they could threaten the ability of emerging market governments to control their monetary supply, the local means of exchange, and, in some cases, their ability to impose capital controls.

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