Facebook unveiled the Libra stablecoin a couple of days ago and took the world by storm. The cryptocurrency was welcomed with mixed feelings across the globe, as people have high hopes, while regulators are going all guns blazing against it. However, there a few factors going for Facebook, which can make it the benchmark in global adoption.
Apart from utility services backing the token, there must be something more concrete for people to trust Facebook. Especially, after the last year’s Cambridge Analytica debacle, people lost their trust in the social media giant. The infamous debacle exposed several questionable policies relating to user data privacy, which forced the company to amend them.
However, Libra has quite a few aces up its sleeves, which could put all the doubts related to privacy to rest. Let’s analyze these factors. We shall hereby continue to analyze these factors as we had done in our earlier analysis.
Big Names Backing Libra
Though Libra was originally planned and created by Facebook, the company has decided to keep itself away from total control over the platform. In fact, it will have a single vote in the custodian board Libra Foundation. The board has big names like VISA, Uber, Andreessen Horowitz, and Facebook itself.
Apart from this name like Vodafone, eBay, MasterCard, PayPal, etc., are backing the cryptocurrency. All of these are established names in their respective fields and will definitely help Facebook garner some credibility and attention for its token.
Appreciation From The Crypto Community
The existing crypto community at large is extremely focused on maintaining user privacy and transparency. The entire blockchain industry is based on these principals, and hence, any appreciation coming from it means that something is seriously right.
Libra has garnered a lot of praise from big names in the industry. For instance, Jameson Lopp, famous cryptoanalyst, and Chief Technology Officer at Casa HODL stated that Facebook’s Libra is well designed and is futuristic. He wrote an entire analysis of the Libra white paper on Medium. From his analysis, it can be summed that though Libra Foundation will be in control of the platform initially, it’s mechanism will make it more open and transparent gradually.
Once the trust is built, Facebook will quickly be able to spread the word and adoption, courtesy of its heavy advertisement capacity, and user reach. Also, as utility service providers like Vodafone and Spotify, and e-com biggies like eBay and Uber, are backing it, expect lucrative discounts and offers on products and services on payments via Libra, which will play a big role in the mass adoption of the token.
Apart from this, the biggest benefit that Facebook has in its corner is the ease of use. Many people who think over entering the crypto space, refrain from doing so due to the complex systems and procedures in place for crypto trade.
This can be completely eliminated in case of Libra, primarily due to Facebook’s established platforms like Messenger and WhatsApp. These two platforms have a humongous number of users and will be updated to have separate sections to buy, sell, send, receive, or store the Libra token. Ones the services are integrated, expect a lot of money transfers on WhatsApp, as people living far and wide will be able to share money via a few clicks.