The battle for blockchain to become a facet of everyday life sometimes seems an uphill struggle. Most people were aware of Bitcoin, while some had even used other versions of the technology through Ethereum smart contracts or used Ripple to transfer money overseas securely. But, when it comes to the battle of blockchain cryptocurrency and standard cash, there has always been a clear winner.
However, Facebook announced earlier in 2019 that it would be launching Libra, its own form of cryptocurrency which would be used for transactions on the blockchain. With Facebook already setting wheels in motion for its blockchain, where do its competitors stand?
Apple and Samsung to Follow Facebook?
Could Apple and Samsung then launch their own currencies to be used on their handsets? While Facebook dominates as an app, the phone’s manufacturers have an even more primed audience, especially if native cryptocurrencies are introduced alongside Apple Pay and Android Pay. The major smartphone providers are locked in a battle of competencies and functionalities, and each update from one spurs on a similar update in the other. Indeed, a strong cryptocurrency could help iron out the differences between Apple and Samsung, for which the former maintains a higher share price, while the latter sells more units, as illustrated in the infographic below.
The major smartphone providers are locked in a battle of competencies and functionalities, and each update from one spurs on a similar update in the other.
Share prices are important not just to the company, but to those invested in the company, so a more defined gap in performance between these manufacturers could lead to a significant market shift one way or the other. Many traders are making use of contracts for difference (CFDs) to speculate on such shifts, understanding exactly how do CFDs work to benefit from them, so with Facebook’s share price improving after the Libra announcement in June 2019, it’s entirely plausible that those invested in the market would want Apple and Samsung to emulate this.
There Are Some Concerns About Libra
Some cite that Libra will usher in a new era for banking, while others state it could be a harbinger of the next financial crash. Congresswoman Maxine Waters and a range of consumer groups have called for a moratorium on the development of Libra until the true effects can be analysed on a wider scale. Libra has the opportunity to send cash instantaneously overseas and has the potential to be secure (though many are skeptical Facebook can handle the security given their lackadaisical past) and could put a spanner in the works for standard banking. A supplementary digital wallet, Calibra, will allow for money transfers on Facebook-owned platforms, i.e. WhatsApp and Messenger, as well as the Calibra app, so Libra has the potential to truly capitalise on Facebook’s extensive in-built audience.
Should more trustworthy companies, such as Apple or Samsung, launch a cryptocurrency now, the general public may be more likely to get behind them. The door has already been opened with the Facebook announcement and related share price rise, so the viability of launching a mainstream cryptocurrency has been proven true, at least initially. Whether Facebook and Libra’s growing dissent should alter this perception, time will tell. calibra