Facebook’s Stablecoin Gets A Mixed Response At The Testing Stage From India
It has been almost a year that we have been listening about the Stablecoin of Facebook. The latest predictions say that the Stablecoin will get launched in Q3 of this year. Since last year, there has been some hiring going on for the blockchain team of the company. The team includes who’s who of the entrepreneurs such as Elon Musk, Reid Hoffman and Peter Thiel. The lunch of the Stablecoin will get dubbed as FB Coin. The platform is endeavoring to strike discussions with Visa and MasterCard regarding the matter, and on the other hand, it is trying to seek an investment of about 1 Billion U.S. Dollars. As per sources, it has been revealed that the company has arranged to get the ‘Libra’ trademark for the Stablecoin.
Early this month, Facebook has been working on its Stablecoin and has revealed its plans to test it in India, in 2019 for WhatsApp payments. On the other hand, when it comes to the testing of the cryptocurrency, several companies in India think that the testing of Libra may surpass a certain set of regulations regarding no involvement of banking routes. This direct transaction system style is making many wary of participating in it. The BTC players, on the other hand, are quite used-to with the fact that the transactions do involve banking services in order to transfer the funds between buyers and sellers or the traders or the investors.
Last year around April’s time, there was a ban on services related to the virtual currencies in India. However, the Reserve Bank of India- RBI who laid the ban in the first place, is not against the blockchain technology and the related uses of the digital ledger technology, as the benefits of the technology are well appreciated by the authority too.
On this matter, the founder of WazirX cryptocurrency exchange – Nischal Shetty thinks that the Stablecoin from Facebook has the potential to “change the entire crypto industry.” He further added,
There is not any law which prevents users within a platform from exchanging value, for example, in the form tokens, between each other.
Further, the founder of Unocoin (a Bengaluru based company), Sathvik Vishwanath said,
This is good news for the cryptocurrency ecosystem in India. Anything like this which displays the usage of the technology by a legitimate player like Facebook or WhatsApp will bring a positive approach for the users.
On the other hand, some startups in the country do appreciate the fact that crypto land is focusing on South Asian countries like India, but nevertheless, they still suggested caution based on the track record of Facebook in the information management and the absence of regulations. Whereas, the founder of Incrypt Blockchain, Nitin Sharma shared the following views,
If the goal is to move from ad-driven to commerce business models, or to incentivize engagement or decentralize identity, various parties (users, developers, merchants, advertisers) need to be able to go seamlessly between the fiat rupee and the crypto Stablecoin in order to see the real-world value.