It should be recalled that Facebook revealed that it was considering plans to launch its own native token or cryptocurrency. The social media giant said it may launch a coin two months earlier. There have been rumors that Facebook has been working around the clock to ensure that its endeavor comes to light.
Now, reports have it that Facebook’s Libra Coin project is scheduled for launch before the month of June runs out. This report, while positive news, has raised serious concerns among crypto analysts and experts. There are genuine fears that Facebook’s new product will displace top digital assets like Bitcoin and XRP, to name a few.
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Cryptocurrency News Update: Facebook’s Sudden Decision to Embrace Crypto is Seen As a Threat to the Digital Asset Space
Facebook’s sudden decision to embrace crypto comes as a threat to altcoins and Bitcoin. Remember, Mark Zuckerberg’s creation, now the largest social media platform previously turned its back on cryptocurrency. The platform even opted to filter crypto promotions on its news feeds citing the gloomy message and controversy surrounding the operations of cryptocurrencies as its reason.
However, Facebook’s sudden interest in developing its own digital currency and the decision to lift all restrictions on crypto related products on its platform has cleared the way for crypto pages to sponsor their own posts. Facebook’s large user-base may be the reason why experts are concerned about a looming threat to Bitcoin, and XRP along with other top digital assets, crypto enthusiasts believe.
As of March 31, 2019, Facebook has no less than 2.5 billion registered users. About 2.38 billion of that figure are monthly active users on the platform. This record is unmatched. Hence, launching its own crypto is a big deal to many analysts and enthusiasts. These ones have all weighed in on the impact that Facebook’s coin would have on the largest digital assets.
XRP News: Facebook’s New Initiative is a Greater Threat to XRP, Charlie Shrem Declares
The founder of Bitcoin Foundation, Charlie Shrem, weighed in on the matter of the threat that Facebook’s forthcoming global coin Libra, could pose to top digital assets. Particularly to XRP.
Shrem declared that the social media whale plans to make firms pay $10 million, to be certified as validators. According to the Bitcoin bull, this alone could be enough to make XRP ineffective.
XRP News: Kieran Kelly: Bitcoin Faces a Greater Threat From Facebook’s New Coin
Kieran Kelly, an XRP bull and analyst took to Twitter to respond to Shrem’s position on XRP being the likely token at risk of being toppled by Libra.
Kelly remarked that Facebook’s “Libra” coin would threaten only the stability of Bitcoin because they will eventually be in the same market. The XRP-centric claimed that this will ensure that the proposed coin becomes an unavoidable competitor of BTC.
Kelly added that Facebook’s user-base is enough to topple Bitcoin’s dominance. “Facebook’s Libra Coin is a huge threat to Bitcoin,” he said.
Kelly is of the view that XRPs primary focus as a bridging asset along with demand liquidity for world banks and remittance firms removes it as an option facing the biggest risk from Libra. Libra is a direct competitor of Bitcoin, but Facebook has a larger following compared to Bitcoin hence it threatens Bitcoin’s position more.