Mati Greenspan Considers Libra Is An Asset-Backed ETF Rather Than A Stablecoin
- Mati Greenspan considers Libra is an Asset-Backed ETF
- Libra is Facebook’s recently released virtual currency
Mati Greenspan, senior market analyst at eToro, wrote a Tweet in which he says that Libra is not a Stablecoin. Libra is the digital currency that was released by Facebook a few days ago and that aims at providing users with a stable digital currency to perform transactions.
Mati Greenspan Believes Libra Is An Asset-Backed ETF
Libra is going to be backed by a basket of different fiat currencies that would give to it stability, compared to other virtual currencies such as Bitcoin (BTC) that experience high volatility. There were some comparisons between Libra and Bitcoin as a means of payment and to process transactions.
One of those talking about Libra was Mati Greenspan. He said that the virtual currency is not a stablecoin, even when its price is stable and is backed by fiat currencies from different countries. On Twitter, he said that Libra is more like an asset-backed ETF. The main difference is that holders would not receive the yield from the investments that back the coin. Indeed, he mentioned that those who receive the yield are the same people who manage the fund.
No, the #Libra is not a Stablecoin!
More like an asset-backed ETF. The difference is that holders won't receive the yield from the investments that back the coin.
The thing that concerns me is that those who receive the yield are the same ppl who are managing the fund. pic.twitter.com/DgOcc6oagr
— Mati Greenspan (@MatiGreenspan) June 21, 2019
However, he mentioned that this would happen if regulators “let this thing through.” There were some regulatory agencies around the world that have already raised their concerns about this new digital currency. France has even created a new task force in order to be able to regulate the cryptocurrency market and the evolution of the Libra project.
At the same time, the Bank of England (BoE) Governor Mark Carney said that he keeps an open mind about Libra but not an open door. At the same time, the G20 has also mentioned that countries should improve their regulations in the cryptocurrency space.
Although Libra has attracted the attention of many individuals around the world, regulatory agencies are thinking about what they will be doing in order to remain in control of the market. Indeed, Facebook would have to be controlling its users, track suspicious transactions and provide information to governments about users’ financial transactions.