According to a recent survey from Gartner, only 11% of CIOs have already deployed Blockchain or are planning to do it in the short term. One tech giant is among that 11 % that already embarked on a Blockchain project. Facebook has finally revealed details about its own cryptocurrency called Libra.
Facebook is not alone in its journey, in fact, it has been backed by major financial organizations like Visa and Mastercard, and other big companies such as PayPal, Uber, Stripe, and Booking.com.
The new cryptocurrency is allegedly launching on June 18th and it may be fully deployed in 2020. Facebook and its partners expect Libra to work as a stablecoin. Stablecoins are those that are attached to one or more State-issued currencies in order to limit its volatility.
But what would be the benefits of Facebook’s Libra?
For example, we could use it to send money to our family or friends without having to pay expensive fees; merchants who sell in traditional e-commerce sites could benefit from cheaper transaction commissions; or we could pay for small content purchases such as songs.
Nicolas Mosconi, Simplex Software’s Co-founder, and Blockchain expert said: “It is very positive to have a heavyweight such as Facebook with billions of users worldwide playing the cryptocurrency game because it will make the system massively known. This will allow a business implementation to have a sense.
Nowadays, implementing Bitcoin as a payment method is not easy because of the lack of a critical mass of users around the world that would make it attractive to be used by businesses. Other inconveniences that make it difficult for Bitcoin to be widely -and worldwide- used as a payment method are the high cost of its transactions and the long waiting time for these transactions to be accepted.”
Nicolas also talked about the negative sides of Facebook’s Libra cryptocurrency: “On the negative side, we have the centralization that entails that only one company is in charge or developing and managing the future of the cryptocurrency. This generates concerns about the possibility of censorship in the system and the need of having to trust a company that is contrary to the spirit of Blockchain. Another negative issue is that centralization makes it easy for governments to regulate Facebook’s cryptocurrency and to apply the same control and taxes as they impose to the banks. Governments can always sue Facebook if it does not comply with the country’s regulations. With Bitcoin, this is more difficult to be done because there’s nobody to be sued, as the system is in fact decentralized, and for the same reason there’s no possibility of forcing them to close the service either.”
What do you think about this new cryptocurrency? Would you trade with or buy a cryptocurrency backed by Facebook?