Last Updated on October 12, 2019
Libra, Facebook’s currency has generated much debate in the crypto space. While applauding facebook’s initiative, it has come under serious criticisms from different quarters like the cryptocurrency community, financial sectors, government worldwide. It keeps generating mixed reactions among crypto-enthusiasts.
A recent debate equating Libra to an updated PayPal has ensued. Alex Karasulu of OptDyn has this to say on it, “facebook’s Libra may still be subject to central bank control because it’s going to operate based on fiat exchange”.
He argued that Libra’s value may be affected by price fluctuations of fiat currency. So Libra may not be a refuge for investors who are concerned about market fluctuations of fiat currency.
He deduced that Libra can not be compared to other cryptocurrencies like Bitcoin, Litecoin, Ethereum, and XRP because it doesn’t have the power to liberate its users, mostly from the central bank’s grip.
Karasulu deduced that it also doesn’t have the quintessence of blockchain as its participants must be authorized to be permitted on the network. Recall Libra foundation consist of hundred members who act as validators. Karasulu sees it more of an enclosed community and may pose challenges for those outside the community and in the crypto sphere.
Libra’s Has the Potential to Act as a Threat to Crypto
Analyzing the impact of Libra on major cryptocurrencies like BTC, LTC, ETH and XRP, the CEO of Interlapse Technologies, Chen says Libra may create ripple effects in the crypto-space regardless of differences between the two.
Libra is not only posing a threat to cryptocurrency, but it is also coming under heat with big players in the financial sector, likewise regulatory bodies who perceive issues like liquidity, national security, the safety of investors funds.
Libra is seen as a threat to the economy in creating that divisive gap between the rich and the poor, it is also presumed that it may squash existing grounds on money printing.
No wonder Libra is coming under such scrutiny, remarked the top executive. Facebook boasts of over 2 billion users worldwide so the Libra cartel may seem usurping.
It may seem so hard what might be the fate of Libra in times to come but one thing is sure, Libra will continue to generate many heated debates within and outside the crypto sphere.