Today, Facebook officially made the announcement of Libra as many had expected. It is interesting to note that Facebook has partnered with at least 27 companies to make this a reality, among which are big names like eBay, Visa, Coinbase, Uber, Paypal and a host of others.
However, many within the cryptocurrency space still have their doubts regarding this project with issues such as privacy being the top of their worries. It should be noted that last year, Facebook briefly banned ads relating to cryptocurrencies on its platform.
According to Mark Zuckerberg’s post where he broke out the information, he addressed the issue of privacy and safety as one of the key points they will be focusing on.
“Privacy and safety will be built into every step. For example, Calibra will have a dedicated team of experts in risk management focused on preventing people from using Calibra for fraudulent purposes. We’ll provide fraud protection so if you lose your Libra coins, we’ll offer refunds. We also believe it’s important for people to have choices so you’ll have the options to use many other third-party wallets on the Libra network” Mark Zuckerburg wrote.
Expert thoughts on the announcement of Libra
3 industry leaders have weighed in on what they think about Libra coin and the impact it will have on the crypto space.
“Facebook’s arrival on the crypto scene illustrates the subtle transformation of money as an economic medium, mirroring the metamorphosis of the global financial system into a virtual economy. Whereas cryptocurrencies are often not viewed in the same league as traditional capital markets, the scales are set to tip in favour of the digital asset class with the social media behemoth’s latest endorsement via Libra” Tony Gu, Founding Partner at NEO Global Capital
“Facebook’s bold, all-in crypto approach is not only a breath of fresh air for the industry, but is the new benchmark for unicorns if they want to get to the trillion dollar level. Crypto economies are still in their infancy and have massive growth curves ahead, and Facebook will not only boost the industry, but benefit from utilizing their own internal cryptocurrency to capture and drive value. History will mark Facebook’s Libra as the starting gun of cryptocurrency 2.0.” Jehan Chu, Co-founder of Social Alpha Foundation
“On balance, it’s probably helpful for traditional players to enter crypto, especially alongside other traditional players who already have, such as Visa (with Wirex) and Paypal (with Coinbase). A company like Facebook has huge distribution and potential for P2P or micro transactions, so the mass market will be further exposed to tokens. At this point, people will be free to exchange out of a centralised Facebook system into a more decentralised currency like bitcoin.” Iain Wilson, Advisor at NEM Ventures
Reading through their opinions on Libra, and also just thinking about how much weight Facebook as an organization has, this should be received as good news in the crypto space.
This move will definitely introduce so many people into cryptocurrencies but also, will be the reason many who feared to deal in cryptocurrencies change their stand on crypto.
What are your thoughts on the announcement of Libra?
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