Reportedly, Facebook Inc. has signed up more than a dozen companies including Visa Inc., MastercardInc. PayPal Holdings Inc. and Uber Inc. These technology companies form a consortium which will find a similarity to XRP or Stellar Lumens validators through the Stellar Foundation.
Facebook will reveal the model/whitepaper of its cryptocurrency, Libra on 18th June. The Whitepaper is the basic design of any blockchain based token that outlines the protocol, governance model, total supply, inflation characteristics, and the utility.
The essential criteria of any cryptocurrency warrant decentralized control and borderless transactions. While Facebook cryptocurrency is expected to be banned for the nations that the US has put sanctions on, nevertheless, mainly the cryptocurrency will be made available to about $2.3 billion users worldwide.
The cryptocurrency will be a stablecoin backed by a basket of FIAT currencies. Hence, there wouldn’t be much speculation around price. Nevertheless, Facebook’s cryptocurrency will have a significant effect on the existing cryptocurrency markets for the good or the worse.
Firstly, it would clear the securitization doubts around many cryptocurrencies, primarily XRP and EOS. Second, it would directly challenge the existing banking system of the world. The borderless payments scheme with storage of stable value has the potential to make Libra a dominant currency. Furthermore, it would also drastically shift the percentage dominance of the top cryptocurrencies.
Read Everything We Know About Facebook’s Cryptocurrency, Libra/GlobalCoin here.
Do you think that the MCap of Facebook’s stablecoin will surpass Bitcoin’s $150 Billion at the moment? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com