Facebook Libra is an ambitious project whose aim is to create a new global currency. Let’s try to analyze and pros and cons of new Facebook project and forecast different scenarios for it!
Binance and Facebook
One of the biggest crypto exchanges Binance wants to put Facebook on the list with the social network’s stablecoin Libra. This means that, Facebook’s native currency can be traded all over the world. According to Binance CEO, Facebook’s crypto coin will not need any regular KYC, short for Know Your Customer, details such as name, phone number, address, or id. That’s because the company already has a lot more information than that about its user base of 2 billion people.
There also will be a Calibra, a digital currency wallet built on the Libra blockchain that will let users send, save and receive Libra coins.
Given that Libra is declared as a stablebcoin, can it compete with bigger players as Tether, TrustToken?
If successful, it makes the Libra accessible to everybody while offloading the regulatory burden of operating the on- and off-ramps to other business. With the big network effects of its ~2.5 billion user app ecosystem, it has the potential to create the largest digital money platform, where it can record all purchases you make and market goods and services to you on a daily basis while leveraging the fact that Facebook already knows more about you than almost anyone else.
On the one hand, Libra could be the ideal stablecoin — the capitalization of the parent corporation is many times greater than any of its closest competitors. It’s also deprived of the competitors’ Achilles heel — the availability of reserve funds in fiat, which correspond to the size of capitalization.
Tether’s capitalization is in the billions, but its transparency and provisioning are often questioned. Regarding Libra, there is no doubt: it’s provided with real money and will be able to keep the course stable in any situation.
But there is a disadvantage as well – an interaction with the authorities and regulators, which may require not only the disclosure of personal data, but also freezing of accounts and blocking transactions. Having agreed to authorities’ terms, Libra will turn into another electronic payment service, which has nothing to do with cryptocurrencies.
Hope you will find this overview easy to understand and helpful!. If you have your question, please write it below, I would be glad to answer your questions or to introduce your project to my team at Astorts Group to be evaluated.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the Ceo of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.