Both, Facebook and Twitter are social media giants that have been ruling the world for several years. While the former had revealed its plans for entering the crypto space, the latter isn’t interested in following anytime soon. Confirmed by the CEO of Twitter Jack Dorsey, Twitter has no intentions of launching its own crypto project.
Instead, the CEO plans to continue his support for traditional cryptocurrencies, particularly bitcoin. While clarifying that there will be no ‘Twitcoin’, Dorsey elaborated that efforts would be made to promote bitcoin.
Dorsey, who is also the CEO of Square, a mobile payments application, had shown support for bitcoin in the past as well. At that time, he regarded bitcoin as money of the internet. Recently, he explained that open internet standards serve people much better than supervised and closed standards. Extending his argument, he told that he would choose open standards such as bitcoin over any other cryptocurrency. Showing trust over bitcoin, he said:
I think [Bitcoin’s] the best bet because it’s been the most resilient, it’s around for 10 years, it has a great brand and it’s been tested a bunch. As I look at all cryptocurrencies that could fill that role of being the native currency for the internet, [Bitcoin is] a pretty high probability.
Dorsey’s mobile payments application Square, has successfully generated $125 million in revenue through bitcoin trading by its customers. Consequently, due to bitcoin, the company has netted a profit of $2 million in the second quarter.
In latest, Dorsey visited Melbourne to expand his business while launching Square Terminal. While promoting Square, Dorsey commented on the situation in Australia. According to him, the banking system is capable of controlling and administering authority, was a global phenomenon. However, Dorsey felt that the banking system was quite acute in Australia. Despite that, he viewed Australia much better than the U.S when it comes to the system of digital payments.
Regarding economy and recession, Dorsey elaborated that there is no one capable of comprehending the entire global economy. He added that the world was always heading into and out of a recession but he was very confident on Square’s resistant nature against recessions and the US-China trade war. He elaborated that this was something that other companies weren’t so lucky with. His exacts words were;
A lot of other business models may be affected, but ours is pretty robust, because people always need to eat, [that will] always be something that’s valuable,
Dorsey had been a bitcoin enthusiast for a long time. Although he had eliminated the option of creating a cryptocurrency, Facebook on the other hand has devoted very special attention to create Libra. In June 2019, Facebook revealed all the details of its crypto project by launching a whitepaper.
As per the whitepaper, the stablecoin created by Facebook aims to offer a financial infrastructure that empowers billions of people. Built on a secure, scalable and reliable blockchain, Libra will be backed by several currencies. In addition to this, Facebook’s cryptocurrency will be governed by Libra Association. This means that despite creating the stablecoin, Facebook will have no control over Libra. Instead, members of the association such as Mastercard, Uber, Andreessen Horowitz etc., will have the decision making power.
Facebook’s crypto project is expected to ease the adoption of cryptocurrencies. Since Facebook has a user base of billions, Libra is expected to increase crypto adoption and awareness tp masses. And for the very same reason, people in the crypto space are very optimistic about Libra.
When Libra was officially announced, Dorian Johannink, Co-Founder and Business Director of Sylo, shared his thoughts with BlockPublisher. He said:
It’s great Facebook is issuing a currency, for a few reasons. Firstly, this will go a long way to introducing digital assets to the mainstream. Secondly, it’ll increase awareness of the benefits of decentralised technologies and push adoption. Lastly, it’ll increase the norm of digital assets as viable fiat alternatives, not just for digital commerce but potentially for real world transactions too.
He further added:
This is probably the best validation the blockchain industry could have hoped for -The largest communication service on the planet acknowledging that the mainstream now wants to engage in digital assets.
The stance of both, Twitter and Facebook, is quite clear now. While Dorsey is all supporting bitcoin, Facebook preferred to come up with its own cryptocurrency. It might not seem so but decisions taken by both social media giants will be tested in the future.
As Libra will share the same space with bitcoin, the largest cryptocurrency by market cap. It is only time that gets to decide who, either Twitter or Facebook, made a wise decision.