This article is intended to convey more market information and does not constitute any investment advice.
One day, Facebook is on the headlines of global business media.
- Facebook digital currency is bullish, small country central bank currency may not have done
- Blockchain Weekly | Unveiled Facebook's Stability Pass Libra
- Thunder is loud, rain is small, Facebook is so currency
- Bison Trails: Why do we spend $10 million to become a Libra node?
- US lawmakers ask Facebook to suspend cryptocurrency projects and accept hearings first.
- Facebook issues cryptocurrencies: the industry is good, but it is extremely scary
The newly released cryptocurrency project Libra brings a lot of attention to Facebook, but it also makes it more drooling. The controversy surrounding Facebook's cryptocurrency has not dissipated because of product launches, but the problem has become more and more. Why did Facebook launch the cryptocurrency project Libra? Will traditional finance be affected? What is the impact of Bitcoin and other cryptocurrencies? There are many different opinions.
Mars Financial APP (ID: hxcj24h) selects 20 Wall Street Journals, Bloomberg, The New York Times, The Economist and other 20 world-renowned media comments on the Facebook cryptocurrency project Libra to help you see the event and see the event. The reasons, impacts and opportunities behind it.
Wall Street Journal: Bitcoin supporters believe that Facebook cryptocurrencies will bring more opportunities
Bitcoin supporters are convinced that Libra, Facebook's upcoming cryptocurrency, will not let other cryptocurrencies die. On the contrary, many people think that Libra will bring more opportunities to the cryptocurrency industry after its launch.
When Facebook announced the details of Libra on Tuesday, it revealed that it is establishing an association to manage it, including more than 20 companies such as VISA and Uber. The Libra Association's corporate elements stand in stark contrast to Bitcoin. Ten years ago, Bitcoin was created by an anonymous person and managed by a group of dispersed and sometimes unstable technicians and entrepreneurs.
The difference between the two is the reason why Bitcoin and other cryptocurrency supporters are optimistic about Libra, and its launch is of great benefit to the encryption industry. Many people believe that Facebook's move will increase public awareness of cryptocurrencies without losing the cryptocurrency-attracting user characteristics (ie, transaction attributes). Some people say that Facebook has to invest a lot of energy to eliminate its privacy concerns, and privacy has always been the core idea of Bitcoin.
Bloomberg: Facebook cryptocurrency faces three major challenges
For the newly released cryptocurrency project Libra, Facebook will face three major challenges in the future:
First, Facebook's performance in payments and business has not improved much. A few years ago, Facebook allowed users to make purchases and taxis through the communication tool Messenger, but this feature has not been successful. This is not the first failure of Facebook in the payment field. As early as 2010, Facebook began to launch Facebook Credit, a payment service that can purchase virtual goods in Facebook social games. However, Facebook Credit has not been successful until Facebook canceled it in 2012. In 2013, Facebook began working with third-party services such as PayPal to meet the payment needs of users. As of 2018, Facebook’s “payments and other services” accounted for less than 2% of total revenue.
If it succeeds, Libra will help Facebook play a bigger role in financial services. But this is only a hypothesis. For 10 years, the cryptocurrency industry has been trying to establish cross-border digital currencies on the blockchain, subverting traditional banks and payment services. However, to date, no crypto asset has been able to catch up with the size of traditional currencies.
Second, regulation will become another obstacle for Facebook. Creating a digital asset requires not only financial institutions, investors, but also regulatory approval. The US Securities and Exchange Commission (SEC) has closed more than a dozen companies or projects that violate securities regulations because of unauthorised currency. Although Facebook said it has been in contact with regulators and central banks, they have not received official approval from the SEC – they can protect Libra from institutional oversight.
Finally, Libra's release timing will also be challenged. The US Federal Trade Commission (FTC) is investigating Facebook's user privacy. On the other hand, Senator Elizabeth Warren and Facebook co-founder Chris Hughes have been calling for a split. Now Libra requires users to give Facebook more trust, while allowing it to enter the digital payment and banking industry, which may lead to more criticism.
New York Times: Facebook plans a global financial system based on cryptocurrency
Those who questioned the cryptocurrency now also doubt the feasibility of the Facebook cryptocurrency project Libra. In addition, Libra has to address Facebook's blamed user privacy issues, and protecting user privacy has always been a top priority for banks or any financial transaction.
On the other hand, if Facebook really plans to launch this project with more than 100 partners next year, Libra will be the most far-reaching attempt by mainstream companies to enter the cryptocurrency field. Facebook has high hopes for Libra, with the goal of building it into a new financial infrastructure that is not controlled by rights agents such as Wall Street or the Central Bank.
Facebook CEO Mark Zuckerberg has repeatedly mentioned his obsession with encryption technology in recent years. A few months ago, he also promised to provide better privacy protection for Instagram, WhatsApp and other products.
But after improving privacy, Facebook can no longer provide accurate advertising to users. Therefore, the virtual financial network will be a new source of revenue after the decline in Facebook advertising revenue.
The payment system will also help Facebook and other US companies compete for financial services in developing country markets. WeChat, developed by China's Tencent, has achieved a high return on revenue in these markets by integrating payment systems into its communications services.
The Economist: Facebook will create a global digital currency
Libra will make global remittances as easy as texting. It will eliminate the high cost, delays and other obstacles to cash flow; it will enable people in less developed countries to participate in the global financial system, protect hard-won wages from exploitation and avoid uncontrollable inflation; it may also A wave of financial innovation is triggered, just like the Internet.
Libra has great potential. If Facebook's more than 2 billion users exchange some of their savings for Libra preservation, it will immediately become one of the most currency in the world. If it is widely used, it will also give publishers unprecedented power. Libra's impact on the global financial system is far-reaching, as is the impact on Facebook's business.
If it does, Libra may become a Facebook tool for making money. Although on the surface, transaction costs do not generate much revenue. But with Libra people can buy ads faster and more easily, and Facebook can earn more. Libra will also let Facebook's social communications products catch up with WeChat, a Chinese super app that also offers payments and other financial services.
Financial Times: Will Facebook Libra shake traditional finance?
Facebook’s first foray into the financial world sparked a direct question – how much impact does the new cryptocurrency have on traditional financial services?
Facebook is committed to de-intermediation of banks and other payment providers through Libra, which means that international transfers will be available for immediate and near-free. If Facebook's more than 2 billion users use its cryptocurrency extensively, traditional financial systems can be significantly affected and even affect the central bank.
Libra will face a lot of extra burden as it introduces a new currency. This may make it harder for a country to control inflation and other issues, especially in capital-controlled countries.
How does the regulator handle cryptocurrencies? Managers at several large banks have identified an uncertain regulatory environment as one of the main reasons why they did not participate in Libra. The head of payment at a large global bank said the situation is "very confusing." There are no banks in Libra's first partners.
Application is the second major issue Libra has to face. In the past, merchants were slow to adopt simple technologies such as chips, and it was undoubtedly more difficult to convince them to accept cryptocurrency payments. The price of cryptocurrencies often fluctuates, and merchants need to use local legal tender to pay taxes and rents.
Time Magazine: Lack of public trust may be the biggest obstacle to Facebook Libra's success
Libra was born on Facebook's "turbulent times." Since falling into user privacy scandals last year, Facebook has made little progress in restoring its reputation. The Federal Trade Commission’s fine for Facebook’s disclosure of user privacy data is expected to be as high as $5 billion. A number of Democratic candidates have called for the spin-off of a monopoly such as Facebook. More seriously, this scandal has undermined public trust in Facebook.
Industry analysts believe that the lack of public trust may be the biggest obstacle to Facebook Libra's success. Facebook promises that Libra users' financial history will be kept secret and will be kept separate from Facebook's data. However, no matter what, some people are worried about the data being concentrated in one place. However, some people say that it is a wise move for Facebook to hand over Libra to the management of the association, and accordingly, Facebook is addressing the issue of “centralization”.
Wealth: Two big questions in front of Facebook Libra
As Facebook faces an unprecedented scrutiny by regulators, Libra helps Facebook regain user trust after a series of privacy scandals – its blockchain network is completely open source, written by Move, a new programming language developed by Facebook. Libra can be used not only for transaction records, but also as an “innovation layer” for third parties to create smart contracts or other blockchain-based services.
Facebook tends to see Libra as a financial service. According to Dante Disparte, Policy Director of Libra, users in the US need to complete KYC certification in order to use their services, meaning users need to provide detailed personal information.
So why is Facebook launching Libra? Based on conversations with Facebook executives, they tend to cut into the remittance market by offering users a simple, low-cost cross-border money transfer service.
Libra will also bring new opportunities for advertising and e-commerce to Facebook. In the future, Facebook can display ads on WhatsApp and Instagram, and users can use Libra to purchase goods or services on advertisements.
One of the big questions facing Facebook is that if the government sees Libra as a disruptor of its fiscal policy, Libra's future will be full of “regulatory mines”. But Facebook said that this is not a problem. Governments have realized that the trend of cryptocurrency is unstoppable, and many people welcome it.
Another issue is how Facebook partners will benefit. Service-selling companies such as Uber may look at Libra's opportunity to reduce the cost of payment, and financial companies look forward to rushing from traditional financial institutions through Libra while looking for new business opportunities. Andreessen Horowitz, a well-known venture partner with Facebook, said that Libra's nodes are not all for short-term gains, but that they want to be at the forefront of financial innovation.
The user will ultimately decide on the success or failure of Libra. If it can be used universally and proves to be better than credit cards and debit cards, it could change most of the technology and financial markets, and may even motivate Apple and Amazon to launch their own cryptocurrency network.
Forbes: Facebook Libra will reshape consumer behavior
On the surface, Facebook Libra is just a global currency for payments, but it may play a Trojan horse and become a strategic tool to reshape user behavior.
Game developers spend a lot of time designing game trading systems to reward players for specific behaviors – all through virtual game tokens. Through game tokens, game developers can increase the user's participation in the game, allowing users to take the initiative to complete the system release tasks, Daguai upgrades, and even build virtual communities. In essence, game developers are using new economic tools to shape user behavior.
Now, Libra allows real-world organizations to shape user behavior in a way that is in-game, encouraging users to actively participate in their activities through cryptocurrency incentives. But unlike game tokens, Libra is more valuable and fluid and can be used in the real world. The game token can only be used in the game where it is located, and it is not possible to purchase items in real life.
Libra's three main attributes allow it to do this:
3. Immediately satisfied. It is the key to shaping behavior by rewarding users to instantly satisfy them and strengthen their behavior. Libra can be applied to more scenarios, so it's easier to get instant feedback and shape user behavior.
CNN: Facebook wants to make cryptocurrency mainstream
Facebook cryptocurrencies will face obstacles that cannot be widely adopted.
Users may need to make a bank transfer or go to a specific exchange office in their location to get Libra. In addition, the user transfers money to the friend through the Facebook communication app, and the other party does not deposit the money into the bank but accepts it for Libra, which is actually not possible. In general, although Facebook's large user base can bring a lot of exposure, Libra's success depends on what users can do with it, not just on Facebook.
BBC: Facebook Libra will become "future currency"
Facebook Libra is an ambitious project with the goal of creating a new global currency. Some people may say that it is arrogant. But Facebook David Marcus believes that Libra's goal is to "correct many systems of the current system" and provide billions of people with the freedom to manage money.
The message revealed is that Libra is not a small project, it is about the future of Facebook and the future of money. Behind this initiative, we saw PayPal, VISA represented the head of the payment field, and Uber, Lyft and other Silicon Valley companies and venture capital institutions unified into an alliance. Just like another form of the Avengers, technology and financial superheroes come together to make the world a better place.
Connection: Libra wants to succeed, not only to cooperate with big companies, but also to cooperate with ordinary developers.
Facebook has named Libra for three reasons: 1) it was a measure of ancient Rome; 2) it is an astrological symbol that depicts the scale of justice; 3) it is similar to the French pronunciation of "libre", meaning freedom. Facebook explained that Libra is "a combination of money, justice and freedom."
In order to achieve these lofty values, Libra not only needs to work with big companies like Uber, but also with ordinary developers – as long as they receive network signals. Libra's deadly enemies will surely emerge, and the promise of privacy and security must be fulfilled. The Libra Association must prove that it can operate independently of Facebook. Otherwise, all efforts around it will be seen as another selfish act by Mark Zuckerberg.
CNBC: Libra has "positive significance" for Facebook
For Facebook, Libra is a "positive thing." With Libra, people in trouble can get money in the digital age more easily. Facebook, which had been in trouble because of user privacy, was trying to borrow Libra to save face.
New York Magazine: Facebook Libra's ultimate goal – French currency
The $689 billion global remittance market is not the ultimate goal of Facebook's Libra launch, and it barely collects a lot of money directly from cross-border payments. Unlike rivals in the remittance market, such as M-Pesa and PayPal Xoom, Facebook Libra does not charge too much for remittances. But as Facebook has always known, Libra is an important means of attracting new users to use its services, and then Facebook will use the accumulated number of users to convince stores, restaurants and other merchants to accept Libra payments.
In addition to competing with the transfer service, Libra will also compete with credit cards – this may be its medium-term goal. Assuming a scenario, you receive a cross-border transfer from a foreign friend's Libra, and then transfer it to another friend via the Facebook newsletter app, which then uses it to shop online. This is a usage scenario of China WeChat. As China's largest social network, WeChat integrates communication, social, and payment functions, and is a hybrid of Facebook, WhatsApp, and Apple Pay.
But Facebook's long-term goal is not here. If it is just to become a US version of WeChat, why Facebook wants to create a new form of exchange. It can work with an international bank and cut into the payment market with its huge social network and service fees below its competitors. Therefore, Facebook and Libra's long-term competition goals are not VISA, PayPal, WeChat, but the yen, the euro, the US dollar and the renminbi.
Washington Post: Once successful, Libra will be revolutionary
Facebook's thoughts on Libra are simple, but once successful, it will be revolutionary – transferring money via Libra is as simple as sending a message. Facebook also plans to expand Libra to more services, such as paying bills with a click, scanning for coffee, and even taking a bus with Libra.
The price of Bitcoin is huge because of market demand. But Libra is backed by a financial reserve that mixes the world's major stable currencies. "Libra's stability will provide users with money utility, rather than letting investors use it for gambling."
Yahoo Finance: Facebook Libra is different from JP Morgan Chase JPM Coin, is the real cryptocurrency
In February of this year, when JP Morgan announced the launch of its own cryptocurrency JPM Coin, it was believed that a large commercial bank was actively embracing cryptocurrency. But as the details continue to evolve, JPM Coin is more and more like an internal token, only for JP Morgan customers, not a real, distributed cryptocurrency.
Facebook's entry into the encryption industry looks different from JPMorgan Chase, and its goal is to make Libra available outside of Facebook's system. In other words, Facebook Libra may be a project that really brings the legitimacy and use of the mainstream world to the encryption industry.
Guardian: Libra will replace the US dollar as the global currency
If successful, Libra will replace the US dollar as the global currency. Even if it only succeeds in taking over 5% of the dollar's global currency role, Libra can influence the position and power of the US economy around the world.
Only companies like Facebook with global, abundant capital and huge political influence can really hope to take over the global remittance market, and at the same time achieve this by reducing the costs to almost zero. Once Libra achieves this goal, it will help immigrants and their families to send money more easily, and on the other hand eliminate all competing services, including local banks and informal financial networks.
NBC News: Regulation is Libra's short-term and most notable challenge
Facebook Libra will face many challenges in the short term, most notably regulation. In the long run, its challenges come from basic technologies and governance.
The government's regulation of cryptocurrencies is a constant problem, and Libra has taken the lead in political resistance in Europe. Bank of England Governor Mark Carney spoke at the ECB's annual meeting on Tuesday, Libra has the opportunity to become a "systemic service," but "must comply with the highest regulatory standards."
In addition, Libra faces a variety of system technology issues, including security, privacy, governance, transparency, and whether it can really be applied to millions or even billions of people.
Facebook and partners refer to a large number of technical and legal professional advice, but they still have to work within existing laws. “Can Facebook be approved?” said Renee Leibler, co-founder and president of the Blockchain Digital Assets Forum of the New York University Education Group. “In a country where the rule of law applies to everyone, passes are not absolutely useful.”
Los Angeles Times: Why is Facebook launching cryptocurrencies?
In the past three years, as one scandal has taken people's trust away, Facebook founder and CEO Mark Zuckerberg has publicly expressed regret that Facebook is taking on more social responsibilities and placing user privacy at the product center.
On June 18th, Facebook launched the cryptocurrency Libra, which is used to challenge the global banking industry. For Facebook, Libra represents a new opportunity. Facebook can take advantage of its dominance in the lives of more than 2 billion users, try to dominate the user's financial life, and even facilitate users' transactions in other products, such as Instagram, Facebook Messenger and WhatsApp.
In developed countries, Facebook earns a lot of revenue through online advertising. Libra offers users here another opportunity to spend time on the Facebook system. Technical analysts say that if Libra's deal is more seamless, it could make Facebook's precision advertising more commercially valuable.
In developing countries, advertising profits are lower, and Facebook is also seeking new user growth points. Libra can attract new user groups to it. If these people seek stable, low-cost, smartphone-based international banking, then Libra is exactly what they want.
Business Insider: Different regulatory rules in different countries can put Facebook in a dilemma
Facebook and partners have high hopes for the newly released cryptocurrency Libra, hoping it will become a global currency to support cross-border payments. People without a bank account can also use it to pay.
But Facebook hasn't solved many of the problems that will cause Libra to fail, some of which may cause Libra to disappear before it goes public in 2020. Most issues are related to financial regulation.
Part of Facebook's challenge stems from its global ambitions for Libra, which provides services to almost every country in the world, and hopes that Libra will be available in these countries. But each country has its own set of rules when it comes to managing banks and other financial services. In some cases, the regulatory rules applicable to a country are even in conflict with other countries.
For example, the United States would ask Facebook and partners to provide enough dollars for Libra's margin, but for Nigeria, the margin must be Naira (local currency). This situation will put Facebook in a dilemma.
Barron's Weekly: Facebook Libra marks the new era of Bitcoin
Libra's launch is a big plus for cryptocurrencies for several reasons:
First, Libra is an ambitious project, and Facebook is involved with a large number of executives, rather than just launching a social media network through an internal incentive system. Of course, this does not mean that Libra will succeed, but the impact is far-reaching. The people who encrypt the world are ambitious and want to transform the financial system with blockchain. Now a large Internet company supports them with action, and those ambitions are no longer so embarrassing.
Second, Facebook knows marketing better than anyone else. When its marketing advantages and resources are invested in the field of cryptocurrency, the public's perception of the encryption industry will be greatly improved.
Third, Facebook will inject new energy into the encryption industry, bringing talent, attention and financial resources. Money doesn't equal success, but it can increase your chances of success.