That said, it seems to be up and down! Some sources say it’s the future, others believe it to be just a fad. But when a tech giant like Facebook begins working towards launching its own cryptocurrency (Libra), then perhaps it’s time to start taking it more seriously?
Facebook is arguably, one of the most influential tech companies in the world, second to Google of course. As such, there has been an immense amount of hype after they announced the production of their very own cryptocurrency. However, it’s not all positive hype of course! In fact, some people believe that this could be the beginning of the end of sovereign currencies. Could we really see the likes of Libra and BitCoin replacing the US Dollar? Or the Pound Sterling? It’s highly unlikely, but then again, stranger things have happened. Take Donald Trump as the ‘commander-in-chief’ for example, who on earth saw that coming?
Of course, pretty much everything that Facebook touches turns to gold, so their new Libra platform really does have the potential to legitimise crypto currencies; which could certainly disrupt big players like Amazon and Western Union, perhaps. One thing is for certain, it has a lot of people excited, and even more people feeling rather nervous!
What does it all mean?
At such an early stage, it is incredibly difficult to tell. However, there are many people who are dubious about cryptocurrencies as a whole, given how they have huge potential to facilitate money laundering, or even the funding of terrorist organisations. The internet is an immense platform with a lot of “grey areas” and regulating something as daunting and potentially dangerous as cryptocurrency might prove difficult.
Of course, it’s fair to say that Facebook has the best intentions and is merely creating the Libra in order to generate a huge revenue stream, by allowing their gargantuan user-base to complete minor transactions in a “closed-loop” system (You can only spend it on things available for sale through Facebook and its associated apps). However, with the recent privacy concern scandal, they’re going to have to be incredibly careful about how they proceed.
Who is in favour?
As it stands, Libra has been receiving a significant amount of financial backing from various credit card giants, such as Visa, Mastercard, and digital payments company PayPal. According to reports, Facebook is seeking to receive as much as $1 billion in support for their cryptocurrency project. Is that enough to make a dent? Only time will tell! But if such large and influential companies like Visa and Mastercard are on board, then they almost certainly believe it will. What are your thoughts? Share them in the comments section below!