Facebook cryptocurrency set to take on banks not Bitcoin.

 

Facebook has created it’s own cryptocurrency as we all know by now with the launch of Libra Coin which is something those who are even the early adopters of bitcoin never thought would ever happen.

The details are emerging, the name is called Libra and is a stablecoin backed with a basket of assets to prevent it from being volatile and inclusive of 28 validators dully confirmed.

$10 million (US dollar) each is the cost to be a validator and there’s a foundation in Switzerland. Facebook has stated that their main aim is to help facilitate payments across the developing world.

Basically, Facebook is trying to create a stable medium of exchange and with this process , payments within it’s network and across the boarders will be made possible and easier. Some difference with the current functionality of Venmo, WeChat and PayPal. In this case instead of transacting pounds and dollars, users will be transacting in Facebook’s Libra.

Facebook and it’s Libra’s supporting corporations such as eBay, Visa, Uber and PayPal and others are re-reinforcing for one reason and that’s data. It may be granted as banking the unbanked, revolutionizing payments and connecting the world, but don’t be carried away as that may not be the case, this sharp and somewhat move into the world of cryptocurrency is about tapping new wells of data, a new dawn on wealth creation like oil well.

No doubt there’ll be plenty of assertions over privacy protection and ‘decentralized’ hand waving, But this is all about Facebook enriching itself through its reservoirs of data, knowing who you are and have access to what you buy, what you may likely need and how much you have despite all the paraphernalia about protection and decentralized hand wave.

This is why Facebook’s Libra will not compete with bitcoin but with banks as it goes further to rather validates the underlying blockchain technology more than ever. Bitcoin is open, borderless, permission less, censorship resistant, immutable and publicly verifiable.

Further more, Facebook’s coin cannot be any of these things because Facebook is a corporation, they have to exist within certain jurisdictions and comply with every rule governing the legacy financial system including vetting every participant and Facebook cannot be neutral in regard to who is using its system unlike the case of bitcoin’s blockchain.

Adding a consortium of global companies as validators, can not decentralize the system at all. All these validators are known and as a fact can be fully “depend on” to adhere to the pressures that exist from the global financial systems. They are now like middlemen or government of their own.

In this situation bitcoin need not worry even critically looking at it, u see that the invention of Libra may even help bitcoin adoption by potentially driving millions of people to seek out what a real cryptocurrency is and by so doing , seek more information about crypto, bitcoin and increased adoption of blockchain technology and by increasing situation you can guess whose space is taken, the banks.
To one side of them there’s the open source, borderless bitcoin growing in adoption every day and on the other is Facebook with their 2.3 billion users.

Facebook really have built a global phenomenon through reinventing what we’ve come to understand as a user experience. What they’ve done with interfaces, they’re going to apply same technology with money, and in that match, the banks don’t have a chance. Banks are being squeezed between two big powerful forces.

Everything will be at the click of a button. You can understand the operating method of Facebook, everything such as loan, credits etc will just be a click away on a platform that 30 percent of the planet’s population are using as a matter of fact.

As Facebook features can be, Libra could crush merchant fees and potentially solve major issues with card fraud. If that wasn’t enough, if Libra is successful in widespread adoption, watch a slew of new coins come to market from the other Silicon Valley heavyweights.

A whole lot of monetary applications even ranging from game to social networking and more apps and so on. There is going to be a new blockchain revolution.

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Credit: George McDonaugh

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