Several figures from the financial world are currently talking about the hottest subject of the moment: Facebook’s Libra stablecoin. The new crypto is seen as very controversial, with people affirming that it is good while others are very scared of it.
Michael Graham, an analyst at Canaccord Genuity, a prominent investment bank, has recently talked about the Libra Network, which was unveiled to the world yesterday. According to him, this new initiative could really benefit the market a lot. Unbanked individuals, especially, would be the most affected ones.
The main problem that he has found is that the project needs to actually be highlighted by governments worldwide before it is real. Facebook can’t simply start something this big without making it legal and regulated first.
He believes that Libra is by far the most “credible” crypto asset so far and that it could boost ecommerce a lot, however, governments need to approve it first. There are several lawmakers against the project, such as Maxine Waters and Patrick McHenry in the United States, who are a part of the House Financial Services Committee.
Facebook is currently being called by the duo to discuss the project. If the company is not compliant with the law, it is probably going to have to shut down its project.
In Europe, Markus Ferber is another voice against the company. He said that Facebook should really not be able to operate on what he described as a “regulatory nirvana” and that the Libra token cannot be considered a sovereign currency, as Facebook is a company.
All of these voices believe that we should be very cautious with Libra, so, according to Graham, a regulatory hurricane is coming towards the token.
Graham Is Actually Bullish On Facebook’s Libra
Despite all the issues that will be started from this need of regulation, Graham is actually bullish on the idea of investing in Libra. He sees it as a “socially conscientious leverage” of the company’s reach to bring more financial inclusion to people around the world.
He is very positive on the decentralization side of Libra, too, as Facebook affirmed that it will only need to hold 1/100 of the rights over the Libra Association with time, which would be the “right level of centralization”.
Many people are very skeptical about this, though, as we all know how centralized Facebook is on the figure of Mark Zuckerberg, the so-called “dictator” of Facebook. Will he decide to leave his power aside in order to promote decentralization? People such as the director of Coin Center Jerry Brito doubt that.
He affirmed recently that Facebook is not really engaged in decentralization and that it will be considerably hard for the company to really open up its system.
Graham is much more positive than him and believes that Libra may validate the entire crypto-based economic model, which would end up being a good thing. He believes that Libra may even surpass Bitcoin (BTC) and become the most important cryptocurrency ever.
He also affirmed that people can pay much cheaper fees if they use Libra instead of other more traditional services, so he seems to be sure that the company will reach a considerable level of success in case they are able to really bank the unbanked and to start a new business model.
Will Libra Be A Direct Competitor of Ripple?
Brad Garlinghouse, the CEO of Ripple, also talked about Libra. He welcomed its launched and considered that this was a very positive sign for the cryptocurrency and blockchain market, as it would bring considerably more awareness to it.
The Ripple executive affirmed that Facebook is a very consumer-centric company and that Ripple is creating a proper enterprise infrastructure, so they are not really competitors.
Some people, however, such as Anthony Pompliano, a well-known crypto investor, have affirmed that Libra has the potential to render Ripple useless with time.
- Source: First Appeared Here
- Published Time: 2019-06-19 21:35:13
The views and opinions expressed in the article Ripple, Binance CEOs Comment on Facebook’s Libra as Canaccord Analyst Says Regulatory Hurricane is Coming do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research.
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