Next week Facebook is all set to unveil its much-talked-about cryptocurrency Libra. The Silicon Valley-based firm has also got the backing of over a dozen financial and internet services companies for the project.
Social networking giant is working with 28 partners, including Mastercard, PayPal and Uber and critics fear move will allow Facebook to collect transaction data from millions of users.
Facebook’s Libra coin could create the digital currency equivalent of the U.S. dollar. To facilitate transactions, Facebook also created Calibra, a subsidiary that will offer digital wallets to operate with their new cryptos. Calibra will be connected to Facebook, Messenger and WhatsAp.
While the Telegram Open Network (TON) is making strides toward its October 2019 launch deadline, Facebook’s stablecoin is looking to have a B2B network that will make all other cryptocurrencies immediately look small.
Facebook executives and others associated with Libra have big aspirations. They hope it will not only power transactions between established consumers and businesses globally, but offer unbanked consumers access to financial services for the first time.
Better than Bitcoin?
Facebook’s major partners and network should leave cryptocurrencies completely deflated since as a centralized stablecoin tethered to fiat currencies, Facebook’s Libra will be the ideal means to use online, exchange between friends and family and do what cryptocurrencies could have done had they found mainstream adoption.
The consensus seems to be Facebook’s Libra will be good for blockchain and boost the demand for Bitcoin globally.
Facebook has been in touch with regulators in the United States, Switzerland and England about Libra, spokespeople or sources at relevant agencies said. However, it remains unclear how, exactly, it would be regulated and none would comment on the licensing process.
Facebook’s “Crypto opportunity” functionally means its stock could rise to $250. The hype of Libra is going to do the company a lot of good. You don’t have to use Facebook’s flagship app or trust it to know that Libra will be convenient.