Caitlin Long, one of the most vocal public proponents of cryptocurrencies, has come forward to offer her take on what’s going on with Facebook and its upcoming crypto. First Facebook Coin, then Global Coin and now Libra, the digital currency is expected to be launched this month and there has already been more than just a little discussion on its merits or value. Now, after carefully studying the project, Long comes forward and offers a few key points that should make potential investors carefully consider all options.
Libra has some positive qualities, according to Long. It can help developing countries and can help them rebound from their economic difficulties. She explains, “By providing citizens of developing nations with access to a store-of-value that is more reliable than their government-backed currencies, Facebook’s cryptocurrency will indirectly exert fiscal and monetary discipline on developing nations—which will improve the lives of many people globally.”
The stablecoin, in comparison to others, could also spread the wealth among its holders. While most projects try to “pocket the float,” the hype surrounding Libra is too big for Facebook to try and do the same.
As with all crypto projects, regulatory uncertainty lies ahead for Libra, but Long posits that Facebook could see a certain amount of leeway because of who it is. She ponders, “Will Facebook catch breaks from regulators that smaller start-ups haven’t—because of the tax data honeypot Facebook’s project will generate for governments?”
While Facebook has the international clout to attract a lot of users to its currency, Long doesn’t expect the attraction to last. She asserts that, after the initial love affair wears off, people will start moving to Bitcoin Core (BTC), or possibly going straight to BTC and completely bypassing Libra.
Facebook has already stated that it will put stringent Know Your Customer (KYC) and anti-money-laundering regulations (AML) in place. This could appeal to governments looking to capture every tax dollar possible. Ultimately, this means more government support for the project but, potentially, less appeal to users.
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