It’s undeniable. Even the most maximized bitcoin maximalist will not be able to deny the potential for the Facebook cryptocurrency to massively shake up the crypto market. Today, Facebook published the Libra white paper outlining its substantial goals for disrupting multiple industries.
The “Libra” coin is set to bring financial services to the fingertips of Facebook users globally. Not only that, but the intentions of Mark Zuckerberg, made public today, represent a move towards decentralization for the benefit of humankind.
Whether you believe that is the true intention, or whether you think Facebook can accomplish its goals is inconsequential. The fact is, what they are attempting to do will impact the crypto industry in volumes. And they have the prodigious worldwide platform and the financial resources to put their money where their mouth is.
We can’t overlook the importance of a project of this magnitude landing in the crypto space. Instead, it’s important to recognize the many ways a Facebook cryptocurrency could impact the crypto, commerce and banking industries. So let’s take a look at some of these ways:
Business enters the crypto market on a grand scale
New money, new people, new tech, new ideas. The Libra coin will be governed by a quasi-decentralized entity called the Libra Association. Facebook will be one member and so far they have confirmed 27 other partners. The initial goal is to have 100 companies across the globe by launch in 2020. Each member pays $10 million to operate a validating node on the Libra Blockchain. That’s one hundred big companies, including Lyft, Visa, Paypal, Spotify, and eBay.
For their troubles, Founding Members will receive transaction fees when validating transactions on their respective nodes. It’s possible they may also earn interest from the Libra Foundation’s low-risk basket of investments, which are also backing the proposed Libra stable coin.
Essentially, each of these 100 Founding Members of the Facebook cryptocurrency will have eyes and brains on blockchain technology. Additionally, consumers, businesses and developers can build off the Libra Blockchain. Now, all this business will be crossing over into the crypto industry. As a result, we could also see the blockchain workforce will grow exponentially.
Massive onboarding with the Calibra Wallet
The 2.83 billion Facebook users could have a cryptocurrency wallet as soon as 2020. The Libra crypto will enter the mainstream via Facebook’s worldwide social media platform. Messenger and WhatsApp users also will have wallet capabilities.
If Facebook achieves all it sets forth in its white paper, other cryptocurrencies will no doubt be added to the Calibra wallet. This opens up crypto trading to the masses.
Libra offers the ability to bank the unbanked
We talk about this a lot in crypto circles. Yet how can we really help people who have no or very limited access to financial services move up in life? Even with the powerful, global banking system we have set up, there are still 1.7 billion adults that do not enjoy what many consider basic banking products. Yet the majority of those people have internet access. If the system run by big banks is not reaching them by now, and Bitcoin has not yet reached scale, the Facebook cryptocurrency offers an alternative.
Libra’s Mission Statement:
Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people.
Beefing up regulations
Face it, cryptocurrency regulations thus far have been nothing short of a quagmire, resulting in industry-wide uncertainty. Maybe what needs to happen is 100 successful companies coming together to work with regulators before creating a new coin. Imagine their collective minds building a new compliance structure for the future of currency. This is the plan for the Facebook cryptocurrency.
The move towards decentralization
Facebook admitting that decentralization is the end goal is a huge boon for the bitcoin community. However, many doubt that Facebook would ever give up its data regime to actually be decentralized. Others may feel that by choosing this direction, Facebook can stave off its liabilities involving data breaches and other offenses.
Still, this type of public acceptance of the idea that power and money should be spread fairly is exactly what will drive people to real decentralized projects like bitcoin.
“The Libra association will develop a path toward permissionless governance and consensus on the Libra network”
While the exact path of the Facebook cryptocurrency project is not yet determined, the direction is clear. Cryptocurrencies will reach a mass audience. Facebook has the money, backing and foundational network to make it happen. Will they be the first crypto project to capture the masses?
The Libra coin, which is backed by a basket of fiat currencies and low-risk securities, is not exactly what a crypto trader dreams of. But they cannot overlook the power this project has to establish cryptocurrencies as the norm in the collective mindset of our hyper-connected world.
Imagine an open, interoperable ecosystem of financial services that developers and organizations will build to help people and businesses hold and transfer Libra for everyday use.” Facebook’s Vision