Facebook currency, these 6 points you need to know


Libra coin is expected to become a global currency?

Although Libra has the “internal nickname” of Global Coin (global currency), it still has a long and tortuous path to “unify the world”. Needless to say, the 1.4 billion potential users in mainland China alone are an unattainable target for them in the short term.

And India, another big country in Asia, has recently become quite unfriendly about cryptocurrencies. Can Libra Coin achieve its landing in its territory? Looking at Europe, Europe, which is extremely focused on antitrust and privacy, has had a bad impression on Facebook due to previous scandals. Today, the French Finance Minister has already asked Facebook to "require some guarantees" on Libra's question, and the precautionary effect is already obvious.


Facebook launched Libra, is it bad for Alipay and WeChat payment?

As mentioned above, Facebook is unable to enter the Chinese mainland market in the short term, so it does not have much impact on the domestic market of Alipay and WeChat payment. Of course, Libra may have an impact on Alipay and WeChat's overseas markets, but the extent of this impact depends on many factors, such as the attitude of countries to Libra and China's domestic policies – the former determines whether Libra can quickly occupy The payment market creates a network effect, which determines whether Alibaba and Tencent can make a difference in the blockchain and cryptocurrency sectors.


Facebook launches Libra, will it threaten the status of Bitcoin?

Indeed, with the impact of Facebook on 2.8 billion users, Libra's launch plays an extremely important role in the popularization and promotion of cryptocurrency. However, if Libra coin threatens the status of Bitcoin, it is too early, and even some people are worried. As Ari Paul, co-founder and CIO of BlockTower Capital, said earlier, the emergence of JPMCoin and Facebook Coin (Libra Coin) is good for cryptocurrencies such as Bitcoin. It is much easier to use the flow advantage of Facebook to attract people and educate them more than to preach to the public from scratch.

That is to say, in the process of people knowing JPMCoin or Libra coin, they will be more or less exposed to the knowledge of Bitcoin, and this process is the process of the advantages of Bitcoin. It will give more and more people an opportunity to get in touch with Bitcoin. At the same time, Bitcoin's status as a “wealth warehouse” will be further strengthened because of its network effect of “value storage” in the cryptocurrency world.


Libra coin is a long-term positive for ordinary retail investors in the secondary market of cryptocurrency?

With the launch of Libra coin, the high probability will attract more people to pay attention to the cryptocurrency, bringing more retail investors to the secondary market of cryptocurrency. As a result, the purchase demand in the secondary market may increase in the short term, resulting in an increase in the currency of the cryptocurrency, especially the mainstream currency. In the short run, this is a good thing for ordinary retail investors. However, in the long run, Libra Coin may not have much to do with ordinary retail investors, and even a certain degree of "bad" for the latter.

First, as a “stable currency” with minimal price fluctuations, Libra Coin is used for “payment” rather than “hype”, and ordinary retail investors have no investment demand. Second, the emergence of Libra Coin has further paved the way for institutional investors to enter the cryptocurrency market, which means that there are fewer speculative opportunities available to retail investors in the market. This is not good news for retail investors who are speculative—in particular, if they still hold a "100-dollar" fantasy retail investor in the currency circle.


Libra helps to break the “monopoly image” of Facebook in people's minds by virtue of the “openness, transparency” of blockchain technology.

Indeed, Libra has launched its blockchain test network and open sourced under the Apache 2.0 protocol, giving people an expectation of its "blockchain" attribute. However, even if Libra Coin's issuance, trading, etc. are recorded in the blockchain, can it really change the "monopoly image" in people's minds according to its DPoS mechanism?

Facebook alone has been criticized for its "node" choices – partners are companies that can afford to pay $10 million in "admission fees." And, as Bloomberg's review article raises the question: When Libra Coin was used for payments within Facebook, WhatsApp, and Instagram, a huge social network, did Libra Coin further highlight and reinforce Facebook's market monopoly?


Can Libra coin really protect user privacy?

This problem may be a problem that friends who have a good expectation of blockchain technology and who are unbearable to privacy breaches. Although Libra said in the white paper, “The Libra blockchain follows the principle of anonymity”, “and will continue to evaluate new technologies that enhance the privacy of blockchains,” but it also says “considering their usefulness and scalability. Sexual and regulatory influences." Therefore, for Libra, which is currently positioned similarly to the alliance chain, we are not expecting too much privacy protection.

On this point, let's see what the big Vs are saying: Chan Changpeng CEO Zhao Changpeng said on Twitter: “Facebook Libra coin does not need KYC. They have more data for 2 billion people. Not only you Name, ID, address, phone number, they also know your family, friends, real/historical location, what you like… they know you better than you. Now even your wallet knows. This is really the best anti-money laundering."

Dovey Wan, founding partner of Primitive Capital, said: "This is a 'stable currency'; this stable currency is managed by Calibra, a subsidiary of Facebook, and the back-end bookkeeping technology is also used by Calibra, so your private key is Facebook."

Sarah Jamie Lewis, executive director of Canadian research firm Open Privacy, asked, "Do you really believe that most of Paypal, Visa, Uber and Facebook won't collude with each other?"

Text | Niu Niu Editor | Tong Source | PANews