If you have been following the latest developments in the crypto market you may already know about Facebook’s Libra crypto. This Facebook crypto is causing a real stir among traders, enthusiasts and regulators already and it hasn’t even been launched yet! This article tells you all you need to know about the Facebook coin.
The project has been in the making for a while now with tentative steps taken by Facebook toward creating the first mainstream and global coin. For two years there has been work completed behind closed doors on the Facebook coin, away from prying eyes.
All we really know is that in June of this year, Facebook confirmed a cryptocurrency project and announced the Libra crypto. This announcement itself has caused widespread fallout among the crypto community and there is real concern about the Facebook crypto that is slated for release in 2022.
What Are the Concerns About Facebook Crypto?
The biggest concerns have been levied by the US congress as well as EU regulators who are concerned that a Facebook coin presents real privacy issues. These come off the back of record fines and the Cambridge Analytica scandal. What has made it worse for the Libra crypto is the size of Facebook and the potential influence it will have. This has dragged up some of the regulatory unrest that other crypto coins have dealt with, like anonymous trading and anti-money laundering prevention.
Then there is concern from within the crypto community itself.
Why is the Crypto Community Wary of a Facebook Coin?
Currently, the crypto community is split for the most part into three camps. In camp one are the Bitcoin enthusiasts who champion the oldest cryptocurrency and are still pushing (successfully) towards mainstream usage. Then chasing Bitcoin, you have the Ethereum and Ripple camps. Both of the chasing camps feel their token works in a better way and can eventually outshine Bitcoin.
This three-horse race hasn’t always been pretty, but it has been conducted on a fairly level playing field. Now with the impending launch of the Facebook Libra crypto, we have a new horse joining the race – a horse that has the world’s largest social media platform behind it to market it to the entire world. Because of the respective camps efforts to promote their coin over years, there is growing resentment that the Facebook coin is stealing their thunder.
This is made worse by the fact that Facebook could swoop in with Libra crypto and become the first mainstream currency. Currently, the crypto market is enjoying a good patch and values are rising across the board. An unknown quantity like Facebook could upset the apple cart and it could have devastating effects on other coin’s values.
Facebook Coin and the Future of Crypto
In the world of cryptocurrency there is never a dull moment and if it wasn’t Facebook making waves then inevitably one day, another big company would. Bitcoin has enjoyed a long tenure at the top of the pile, and as always, we are left wondering if this new cryptocurrency will be able to knock it from the top.