Facebook has unveiled its much-awaited cryptocurrency, Libra. This is a big move for the crypto world as Facebook has stepped into the blockchain world opening up this space to more than two billion users across the world. Here’s how the crypto world has reacted to this big reveal:
“Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people.”
Facebook just announced their cryptocurrency and they never shy away from world-changing ambition.
— Pomp 🌪 (@APompliano) June 18, 2019
Facebook Libra coin don’t need KYC. They have so much more data on the 2 billion people. Not just name, id, address, phone number. They know your family, friends, real-time/historic location, what you like… They know you more than yourself. And now your wallet too. Best AML!
— CZ Binance (@cz_binance) June 18, 2019
After reading some more stuff about Libra I am even more bullish on Bitcoin.
— WhalePanda (@WhalePanda) June 18, 2019
Sell Libra, buy Bitcoin
— Alistair Milne (@alistairmilne) June 18, 2019
I think it’s safe to say Facebook’s Libra is massive tech companies giving the finger to government authority and power, claiming it for themselves and themselves only.
— Peter Todd (@peterktodd) June 18, 2019
Libra has low volatility and it is going to be a value store over short term.
STOs whether on Libra or other blockchains are still a bit far!
I don’t know about altcoins but bitcoin seems to be a winner here as long term holder of value. Libra will just cement it’s position.
— Hammad (@hammadtariq) June 18, 2019
In order to use Libra, one does not need to own a Facebook account. With this, Facebook is applying a hands-off approach to the uncertain and volatile world of blockchain and cryptos.
In these reactionary tweets, one can clearly carve out the fact that despite the hype and revolutionary expectations associated with Facebook’s cryptocurrency, it is not as game-changing as it was thought to be by some. From what Facebook has proposed, it is by-far clear that it is not expected to dethrone bitcoin from the king’s chair of the crypto world, although it might challenge the banks.
The announcement of Libra comes with the reveal of Facebook’s subsidiary, Calibra, and an independent consortium, Libra Association, which has big names like Visa, MasterCard, PayPal, Uber, Lyft and others under its banner. While Calibra will help build services and products around the Libra token, Libra Association will be responsible for maintaining and governing the entire global network.
With this currency launch, Facebook wants to reach a major part of the population on planet Earth with a special focus on people who are unbanked. Without going through the hectic procedures of the banking system, people would be able to participate and perform online crypto transactions with much ease. For Facebook, the initial focus goes to the international remittance system. But overall, Facebook’s crypto coin is still a centralized coin that goes against the core principles of the crypto world.
Looked at the Libra white paper. It’s not very interesting. Just another centralized coin. You can’t start out centralized and “become” decentralized. #Facecoin
— Samson Mow (@Excellion) June 18, 2019
From the criticism that is arising out of the crypto world regarding Libra, it is clear it’s centralized nature is a problem for many. Libra is not a pure cryptocurrency, it is a stablecoin which means it is pegged to the fiat world. Libra is going to have pegs with multiple fiat currencies in order to facilitate maximum people. But due to these pegs, all the shortcomings of the inflation-based fiat system get inherited into Libra as well.
Despite being a digital mirror of fiat, Libra still carries some of the prospects promised by the nascent technology of blockchain such as immutability. On the other hand, Libra takes out the major promises of decentralization, openness, and trustlessness out of the Libra ecosystem as the parent company is going to be in prime control, thus the centralization issue.
Amid all the criticism, there are still many positive remarks regarding Libra circulating around. Many believe that Libra will expose the crypto world to a huge base of users across the globe thus increasing the adoption of the cryptos overall.
People will realize the potential carried by digital currencies and might even get interested in bitcoin if Libra does not fulfill their needs. Other cryptos will also get their fair share of exposure to the world. All in all, Libra is a positive move for establishing the credibility and potential of the crypto and blockchain world. With more and more adoption of cryptocurrencies, this nascent space will get closer to its goal of challenging the centuries-old debt-based banking system.
While Facebook’s Libra doesn’t compete against any open, public, permissionless, borderless, neutral, censorship-resistant blockchains, it *will* compete against both retail banks and central banks. This is going to be fun.
While Facebook’s Libra doesn’t compete against any open, public, permissionless, borderless, neutral, censorship-resistant blockchains, it *will* compete against both retail banks and central banks. This is going to be fun to watch.
— Andreas M. Antonopoulos (@aantonop) June 18, 2019