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Crypto World Reacts to Facebook’s Libra – Bitcoin to Go Bullish

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:

READ ALSO: The Case of Facebook’s GlobalCoin Power – Libra Association Expected to Rule

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.

SEE ALSO: Facebook Crypto Update: E-Commerce Giant Taken On Board Project Libra

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.

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.

READ ALSO: Banking Analysts Call Facebook’s GlobalCoin ‘A Historic Initiative’

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Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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