Bank of America said: "Facebook and its partners with more than 2.5 billion users are likely to become important supporters of cryptocurrencies. At the same time, cryptocurrencies will greatly enhance Facebook's application ecosystem."
Royal Bank of Canada said: "We believe that Facebook will use cryptocurrencies to promote its platforms: payments, business transactions, applications and games."
Wall Street analysts are eagerly awaiting Facebook's cryptocurrency payment program to be launched on Tuesday. According to various reports, the company will unveil the "Libra project", the partners of this project also include Visa, MasterCard.
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So far, Facebook is the best performing stock of "FAANG" (technical Internet stocks including Facebook, Amazon, Apple, Netflix and Google, etc.), which has risen more than 40% this year.
Due to various privacy issues, Facebook has been under tremendous pressure from government regulators. Most analysts believe that this encryption project may bring significant improvements to the company's situation.
Royal Bank of Canada analyst Mark Mahaney said, "We believe this may be one of the most important initiatives in Facebook history, opening up new ways of participation and sources of income for it." Many other analysts share the same view.
Analysts at Sun Trust Bank said: "We think this is a major project for Facebook, which may lead the company to a leading position in the business and financial services sector, thereby significantly expanding its market and growth prospects. And because of this partner Diversity, it also reduces the restrictions that regulatory review and antitrust laws may bring."
Analysts at Moffett Nathanson believe that Facebook is now more than just a focus on social media. “Facebook is also focused on becoming the world's leading e-commerce platform.”
Here are the detailed views of major analysts on Facebook's release of cryptocurrencies:
Sun Trust Bank:
"We think this is a major project for Facebook, which may lead the company to a leading position in business and financial services, thereby significantly expanding its market and growth prospects… Facebook has positioned the company as one of the main players in the development of cryptocurrency Even the main architect of this emerging and important future development. Although cryptocurrencies have existed for many years, no other company can bring user size, brand support and balance sheets to cryptocurrencies at the same time as Facebook. Facebook's diversity of partners, it will also reduce the restrictions that regulatory review and antitrust laws may bring."
“We believe that Facebook-based cryptocurrency payment systems will be especially useful in high inflation and unstable banking systems and cross-border payments. Therefore, Facebook’s business ambitions do not seem to be limited to highly developed markets. Instead, Facebook also Focus on becoming the world's leading e-commerce platform."
Royal Bank of Canada:
“We believe this may be one of the most important initiatives in Facebook history and will open up new ways of engagement and revenue. We plan to analyze its white papers to help investors understand the economics of encryption behind Facebook tokens. We believe Facebook will use cryptocurrencies to promote its platforms: payments, business transactions, applications and games. And this move will be a multi-step process: companies will first focus on user engagement (through messaging) and then A deeper level of profitability. A similar strategy has played a very good role in Facebook's previous core advertising business.
Bank of America:
“Facebook and its partners with more than 2.5 billion users are likely to be important supporters of cryptocurrencies. At the same time, cryptocurrencies will significantly enhance Facebook’s app ecosystem. Despite the ease of use and potential adoption of cryptocurrencies There are problems, especially since there are many other very viable online payment solutions, and the project may still have important news visibility and a catalyst for e-commerce activities on Facebook. We think this is an important step for the company. Because it creates a more private and e-mail-enabled messaging system."
“Many reports show that Facebook will announce the details of its cryptocurrency plan Libra by releasing a white paper tomorrow morning. The report shows that Facebook’s Libra plan will probably be one of the most organized projects implemented by technology companies with global consumers. The currency can be used for a variety of applications, from P2P remittances to merchant shopping (including Instagram shopping and Facebook trading markets). As Zuckerberg said at this year's F8 conference, "Remittances should be like sending a photo." It's just as easy. Libra plans to bring important new products and profit streams to Facebook in the future. However, the regulatory framework for cryptocurrencies remains unstable, and the success of the Libra project will also prove whether Facebook has the ability to overcome its recent credibility. Questioning.
This article was compiled from CNBC.
Image source: Time Magazine
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