Libra has taken the fancy of several major crypto players ever since its unveiling on June 18, and Huobi is no exception. The research and analysis wing of the top crypto exchange, Huobi Research, seems to have been analyzing Facebook’s cryptocurrency and has listed a few key features.
— Huobi Research (@Huobi_Research) July 3, 2019
Huobi research stated that the most prominent feature of Libra is that it’s issued and managed by the decentralized Libra Foundation. Though Facebook is the mover of the idea behind Libra, several big names like VISA, MasterCard, Uber, PayPal, and several others are backing the token. Till the official launch in early 2020, Facebook intends to increase the founding members’ count to 100. Huobi further says,
Libra emphasizes user privacy protection, which may help Facebook to restore its public image. In addition, Libra may have an impact on the cryptocurrency that targets cross-border payments and other stablecoins, but may have little impact on popular cryptocurrencies such as BTC.
Facebook’s brand image was severely damage after the Cambridge Analytica debacle, which exposed the companies dubious privacy policies. Resultantly, several big names and market influencers quit Facebook, which includes Tesla Chief Elon Musk, Singer and Actress Cher, Actors Jim Carrey and Will Ferrell, WhatsApp Co-founder Brian Acton, and Apple Co-founder Steve Wozniak. Therefore, it is extremely important for Facebook to regain public trust if it wants Libra to take off.
Huobi Research also added that though not in the short term, Libra might to challenge the dominance of fiat currencies. It said,
At present, Libra is still in the early stages and does not have the strength to take over sovereign currency within the near term. But in the long run, it depends on its governance structure, team execution, and market penetration.