Crypto Experts’ Take On Facebook’s Cryptocurrency “Libra”: It’s Three Magical Words

  • Facebook has officially launched its cryptocurrency Libra.

In early 2008, the Facebook-Cambridge Analytics data scandal revealed that the latter harvested the personal data of millions of people’s Facebook profile without their consent and used it for political advertising purposes.

During its first quarterly release this year, Facebook said it is expected to pay a fine of up to $5 billion to the US Federal trade commission for violating the terms of a 2011 agreement to better protect users’ privacy.

In the aftermath of this debacle, Facebook founder CEO Mark Zuckerberg promised its audience that they will make a shift to users’ privacy and went on to the blockchain and cryptocurrency’s way.

“A Monopoly Scam”

Announcing a new blockchain and the token of the same name that will run on it, one interesting fact of this cryptocurrency is you don’t have to have a Facebook account to use Libra.

Alphaville provides a short and tart explanation of what actually is Libra,

“It's a glorified exchange traded fund which uses blockchain buzzwords to neutralise the regulatory impact of coming to market without a licence as well as to veil the disproportionate influence of Facebook in what it hopes will eventually become a global digital reserve system.”

On Tuesday, the social media giant released the whitepaper, that can be found here with a far-reaching scope. As found out a few days ago, it is backed by a good list of heavyweight players that are part of an independent consortium called Libra Association. This is a group of 28 founding members that include Mastercard, Visa, Coinbase, PayPal, Uber, Visa, Lyft, and others.

Bitcoin promoter Andreas M. Antonopoulos in a video today explained how Facebook or any company like it can never have a cryptocurrency as it “doesn’t have any of the fundamental characteristics of cryptocurrency.”

Antonopoulos explains how it “doesn’t stand on the five pillars of an open blockchain.”

Even Nouriel Roubini called it “a monopoly scam” as he illustrates how it will start as a “private, permissioned, not-trustless, centralized oligopolistic members-only club. So much for calling it “blockchain”. Like all “enterprise DLT “it is blockchain in name only and a monopoly to extract massive seigniorage from billions of users. A monopoly scam.”

Calibra’s Special Touch

With a user base of 2 billion, Libra is coming with a new Facebook subsidiary Calibra that will develop financial services and products around the Libra network that will be fully governed by the Libra Association.

Intends to start with a digital wallet for the Libra coin, Calibra will allow users to transfer funds to each other and further store their tokens locally.

Customers will be able to access the wallet functionally through Facebook’s Messenger, Whatsapp Service or new standalone app on Android and iOS.

Calibra intends to follow anti-money laundering and know-your-customer regulations in those jurisdictions it conducts its business and wouldn’t run where cryptos are banned outright.

Registered as a money service business with the US Department of Treasury, Calibra is working to acquire money transmitter licenses in the US states that basically treat cryptos as the equivalent of money.

Other wallet providers will be able to build products on the Libra Protocol when the network launched at it scheduled early 2020. However, Jameson Lopp, the CTO at Casa is “skeptical” about developers be able to run any “technically valid app they can dream of on this platform.”

Bullish For Bitcoin

Numerous speculations followed Libra’s official release however, industry experts called it out a positive development that is and will drive Bitcoin and crypto adoption higher.

According to Saifedean Ammous‏, a Bitcoin economist,

“Libra is the only digital currency other than bitcoin that matters, and it could succeed massively.” However, he clarifies in no uncertain terms that “it does not compete with bitcoin,” rather “reinforces bitcoin's value proposition, and will likely need to rely on bitcoin if it succeeds.”

“In the long-run, it will only survive by being subservient to bitcoin and pegged to it. The only other fate possible is the life & inevitable death of yet another irrelevant stupid shitcoin,” Ammous said.

Just like Ammous, Max Keiser says Libra's competition will be against rather fiat.

To put it succinctly, this is “Bullish for Bitcoin.”

Overall, crypto industry experts are as much confident about Libra being bullish for Bitcoin as they were before these details were unveiled.

“Facebook and LIBRA. I feel a huge FOMO and bull run for crypto is on its way,” comments Tron founder and CEO of BitTorrent, Justin Sun.

And of course, Bitcoin Billionaire and Gemini co-founder, Cameron Winklevoss’ prediction,

“Prediction: ever FAANG company will have its own coin within 24 months,” Tweeted Winklevoss.

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