Facebook’s Libra Reboots the Crypto World
Facebook Libra Project set’s to rebook the crypto world.
It’s safe to say that what Facebook has done, no other company has been able to do on a global scale and receive such global exposure. Today, the only places where crypto is discussed is Medium, Facebook, Twitter, LinkedIn, and the crypto rags. But now, we are talking about major global media exposure like CNN, MSNBC, Fox News, BBC, etc.
Facebook today has 2.4 Billion (Facebook, Instagram, Whatsapp) users that is 31% of the world’s population.
In one announcement, Facebook woke up every central bank, bank regulator, government, and various officials in the world. Now they can’t pretend they don’t know what crypto is and how it would impact them, a huge achievement by one of the most mistrusted companies in the world. In one announcement, Facebook created fear most never thought possible in crypto sector. Facebook can overnight be the world’s largest central bank. Think about it.
The World’s Largest Central Bank!
The current turf wars that President Donald Trump is having with China, Canada, Russia, Mexico, France, and Denmark, just to name a few, would be put to a complete halt by one company, Facebook. That is power!
The crypto sector’s hardcore evangelists see this as validation and are rooting for the rise in the price of bitcoin and other cryptos that nobody on earth knows what they are and have no value in the real world today.
Facebook Libra would bring it to real-world and make it usable instantly to 2.4 billion users globally. No other bank or country can pull off such a stunt.
Are you awake now!
What is the impact of LIBRA by Facebook.
Some are excited its validation. Some see it as a competitor.
Here is what’s going to happen whether Facebook launches LIBRA or not.
Facebook can and will kill over 98-99% of the crypto companies around the world that have coins which are trading but have no real value.
This will be done in two ways:
- Facebook decides to abandon the LIBRA project for lack of regulatory support. This will create global uncertainty that start-up projects will face the same demise as Facebook. Investors will be asking themselves if Facebook can’t pull it off, how is this new start-up going to accomplish it?
- Facebook is denied by regulators to proceed. This is the worst one of all. Today, countries like Mexico, Indonesia, Nigeria, and more are shutting down companies in light of what Facebook has launched. Facebook is a threat to central banks, governments, regional banks, and many others who will not allow them to proceed, forcing even those who are supportive of crypto to side with regulations to shut them down. This is the killer if Facebook goes all the way only to be shut down.
Either way, this is going to hurt a majority of the crypto players.
As I mentioned, Facebook did what no other crypto company has been able to accomplish: woke up everyone and bring instant global awareness.
Even the hard supporters of crypto are now wondering, wait a minute, what would happen?
Facebook made the whole crypto business real overnight and now we have a really serious discussion. We got our wish: global awareness. Sometimes, you have to be careful what you ask for!
Yes, we all agree it would have been better if it was not Facebook, as the company faces fines globally for how they manage data, and featured in the latest 2019 documentary, The Great Hack, and how its platform was used to change the outcome of many governments, not just the United States.
Every government around the world is going after this company for its untrustworthy business practice, and then the company adds crypto to the mix just to complicate matters. There is a danger that Facebook could become a Fakebook.
They are the supervillain du jour of business.
Because of their size, they got instant global exposure and has put this at the highest ever scrutiny. So, the reality of crypto becoming what everyone hopes could finally come to a very hard stop.
Politically speaking, what is happening around the world is that every country is protecting its borders and citizens. Even crypto supporters in governments, regulatory agencies, and banks will take a step back.
What Facebook has now shown them is that any of these crypto players can become bigger than any one nation or any one bank. So best to put the brakes now before it gets carried away.
So get ready for the Great Crypto Reboot. And it will not look like what you thought!
Jofre is one of the top 10 global thought leaders in Equity Crowdfunding, a Top 10 Fintech & Blockchain Influencer and a Top 50 InsureTech Influencer. Prior to co-founding KoreConX, Jofre founded SaaS-based, multilingual translation portal, BabelFish Corp. where he led a team of more than 135 individuals to provide multilingual solutions to 7,600 contractors around the world. He was awarded the Vision 2012 Businessman of the Year by the Toronto Hispanic Chamber of Commerce and is a globally sought after speaker on the topics including equity crowdfunding, blockchain, FinTech, compliance, shareholder management, alternative finance and RegTech.