CNBC Video: Jim Cramer Calls Facebook’s Libra Cryptocurrency Coin Brilliant After Reading Whitepaper
Facebook Officially Announces The Creation Of Its Cryptocurrency Libra, CNBC’s Cramer Says the Project Is Brilliant
Today, Facebook finally announced its most awaited project, Libra. According to the organization, a new Facebook regulated subsidiary called Calibra was created in order to manage the project and to create a new wallet based on the service.
The head of Calibra, David Marcus, talked about the new token on CNBC Crypto. According to Marcus, the main difference between Libra and some other tokens is that most of them are investment assets. However, they are not great mediums of exchange.
Libra, on the other hand, is being created to really function as money. The idea is that you can use it for cross-border transactions or to even buy stuff on the internet.
One aspect of the launch is certain: it will help to expand Facebook’s presence and power in global payments. Because of that, the company already has the backing of tech giants such as Visa, MasterCard, Paypal and Uber.
Other companies include Ebay, Spotify, Farfetch, Stripe, Bison Trails, Lyft, Vodafone, Booking Holdings, Mercado Pago and others. These companies have all joined in order to be a part of the Libra Foundation.
Obviously, the launch made Facebook shares skyrocket in price and they are trading just below 200 per share now. The launch also affected Bitcoin, which is trading at over $9,000 USD right now.
CNBC Crypto Talks About Libra
The members of CNBC Crypto analyzed several aspects of the new token. For instance, they affirmed that Facebook was leaping in front of many banks by creating this, which would obviously bring it a lot of money. Facebook is ready to use the blockchain technology to cut all the middlemen (while kind of becoming the middleman itself since the token will be very centralized).
Jim Cramer affirmed during the show that the project was “brilliant” and that he could find absolutely no problem on the White Paper of the project, which has just been released.
What seemed to impress Cramer the most was the fact that, while Libra will not be a traditional currency in any way, it can be a way out for people who are trying to be protected against inflation.
He affirmed that most of the world have to use terrible currencies which are very inflationary and that this is what crypto is for. The whole technology was created to overcome weak fiat currencies and Facebook may do just that. Examples such as the national fiat of Venezuela show just how important having something like this is.
The team at the show also affirmed that this was one of the most well-organized efforts of its kind and that it will help the company to “unlock” millions or even billions in revenue by just launching the new token.
Cramer affirmed that there are a lot of unbanked people in the world and they will recognize the fact that it is Facebook and not any bank that actually let them in into the global banking world, not these traditional companies.
The Controversies Surrounding Libra
It’s no secret that everybody was eagerly awaiting Facebook Libra’s official announcement. The main reason for that is very varied, though. Some fear that Facebook may have too much power on their hands while others believe that the so-called Project Libra will bring more attention to this market.
Recently, CNBC’s Crypto Trader host Ran NeuNer has called the CEO of Facebook, Mark Zuckerberg, an “unelected dictator” and affirmed that, despite his initial hype, he was starting to be afraid about what the company could do with such power.
Diehard Bitcoin fans also criticized the company and the token for its centralization and affirmed that it will not help the crypto market at all.