- Facebook’s Libra project – the journey so far
- Facebook Libra’s Stance on Criticism
Regardless of the volatility and controversy surrounding Facebook’s Libra, digital coins are evolving rapidly. Facebook’s portrayal of Libra ticks all the boxes expected of the social media giant as it provides its cryptocurrency stance. Sometime in October, politicians on Capitol Hill interrogated Mark Zuckerberg on issues including the management of Facebook of Libra users’ data. Also the siting of the Libra Association, which is the organization that runs the project in Switzerland rather than the United States.
These criticisms are based on concerns about Facebook’s privacy policies and advertising practices. Though, several founding members of the Libra project, including eBay and MasterCard have abandoned the project. The Criticism of Libra, Facebook’s first attempt into the cryptocurrency world has been rough but has piqued the interest of investors in this fast-growing financial instrument. According to Azoth Analytics, a business research and analytics company, the cryptocurrency market was valued at $856.36 billion last year. Commenting on this, Nick Cawley, a crypto-expert stated:
“The market valuation since then has fallen by over 75% to a current level of $195 billion, during which time many coins or tokens have proved worthless or been removed from exchanges.” “Indeed, many exchanges have also been shuttered due to poor management, hacks or illegal activity and the lack of trading volume to make the business economically viable.”
Facebook Libra’s Stance on Criticism
Though this cruel alteration and expulsion have led to a maturing of the market and a reassuring of recent volatility is encouraging a more positive, if guarded, cryptocurrency stance in the markets. In the end, financial institutions are being encouraged to recommend cryptocurrencies to their clients.
There are some events affecting investor’s sentiments, events such as China’s potential of launching its state-backed cryptocurrency and President Xi Jinping’s revolution on the significance of the blockchain. Commenting on this, Kiran Raj, the chief executive of Bittrex Global stated: “But the important trend is the long-term view and here the most significant development is a growing institutional appetite for cryptocurrencies.”
Bitcoin (BTC) Price Today – BTC / USD
Using a survey conducted earlier this year by Fidelity of U.S institutional investors, which showed that 22% already have digital asset experience and 47% believe cryptos have a room in their folders. Mr. Raj states: “As in any asset class, flows of institutional capital will ultimately determine growth and stability.”
Speaking on what can aid mass adoption of cryptocurrency, Mathieu Saint-Cyr, the managing director and head of asset management at Geneva Management Group stated: “For the view on financial assets to shift, co-operation between regulators, cryptocurrency builders, and other players must be encouraged and fostered.” He thinks regulators and the crypto industry has a lot of work to do.