On Yavin, blockchain data strategist, CEO and founder of Cointelligence, says that Facebook’s cryptocurrency Libra is not a real cryptocurrency, and yet, it could have a positive impact on the crypto market. However, the arrival of Facebook Coin hasn’t had as much of an effect on the market as Mr Trump’s trade policy according to Luno.
“The new Facebook coin is a fake cryptocurrency. They are calling it cryptocurrency because it is a buzzword. It may be a digital currency, but it is not a cryptocurrency. It is a crap coin,” says On Yavin.
On believes that Libra is not a real cryptocurrency because of three main factors: A Facebook digital currency will by definition be largely centralised; Facebook has a huge trust problem after its poor track record in securing its users’ personal data; and Facebook is partnering with big companies such as Uber, Paypal, Vodafone and Visa to create Libra. In essence, this means that big corporations will continue to control the system and exploit users. “That is the opposite of what a real cryptocurrency should be,” says On.
However, regardless of the future of Libra, its launch has exposed huge numbers of people to cryptocurrencies and the world of blockchain. Because Facebook has now officially stepped in, crypto may start to be viewed as more serious and credible.
“I think that the positive side is that Libra will get so many people introduced to the new generation of digital payments and some of them will want to learn more about real cryptos like Bitcoin and Ethereum.”
Up to this point, conversations about cryptocurrencies have been nearly exclusive to technologists. Now with the launch of Libra, Facebook is practically making cryptocurrency available to its two and a half billion users at once. “I think that the positive side is that Libra will get so many people introduced to the new generation of digital payments and some of them will want to learn more about real cryptos like Bitcoin and Ethereum.”
Marcus Swanepoel, CEO at Luno, is less convinced of Libra’s power to influence the crypto market for better or worse;
“Cryptocurrencies are neutral as the financial markets debate Libra
Facebook’s planned launch of the Libra token has put the focus back on digital currencies, but left Bitcoin and Ethereum in the trading range they have had for the last few days. As the markets debate the old arguments about the relative merits of centralised versus decentralised financial systems and whether a coin is a currency or a security, altcoins have seen reduced volumes. BTC is currently holding around the US$9,300 level and ETH is around US$270.
Today the UK Bank of England rate decision is expected to remain unchanged however in the US President Trump appears to want to start devaluing the dollar and start a ‘currency war’ which could lead to more liquidity going into altcoins.”