MEXICO CITY, MEXICO / ACCESSWIRE / September 20, 2019 / When Facebook made the long-awaited public announcement of its plans to launch a cryptocurrency called Libra, one group of people immediately reacted with great enthusiasm: Wall Street analysts. “We came into 2019 with the view that mega-cap Internets, and Facebook, in particular, would need to increasingly diversify their businesses and revenue streams. We believe Libra can accelerate that diversification for Facebook as it creates engagement beyond social and communications and facilitates commerce across the platform,” JPMorgan analyst Doug Anmuth wrote in a research note. However, the news also sparked heated discussions and projections about the implications of this project for cryptocurrencies in light of Facebook’s sheer clout: the user base of the social media platform topped 2.4 billion in 2019, making the company unrivaled in terms of influence and reach. Expert forexbroker Pablo Soria de Lachica has identified two main threads in the narrative about Libra’s potential impact on the wider cryptocurrency market: adoption and regulation.
Technically speaking, Facebook’s digital asset belongs to the group of so-called stablecoins since “it will be backed by a collection of low-volatility assets, such as bank deposits and short-term government securities in currencies from stable and reputable central banks,” as the white paper explains. It will also operate initially on a permissioned blockchain, which means that only transaction validators will have access to it whereas Bitcoin, the original cryptocurrency, is fully decentralized. Nevertheless, Libra could succeed where other digital coins have so far failed, which is bring cryptocurrencies into the mainstream,Pablo Soria de Lachica notes. RBC analysts view “Facebook’s introduction of the Libra currency as a potential watershed moment for the company and global adoption of crypto.” When the official announcement came, investment bank Baird wrote, “Today’s unveiling of the Libra White Paper addresses some of the largest barriers to mainstream cryptocurrency adoption (security, processing scale, commercial utility, etc.) and, over the long-term, highlights significant potential benefits for cross-border payments/e-commerce, particularly in developing markets.”
Many analysts maintain that Bitcoin and other cryptocurrencies have been held back by the lack of regulation, existing in what has often been called a “Wild West market,” Pablo Soria de Lachica comments further. Kevin Werbach, legal studies and business ethics professor at the Wharton School of the University of Pennsylvania, said in a podcast interview, “I have felt for a long time that there needs to be more regulatory engagement with cryptocurrencies, not to shut them down but to actually transition them to become more trusted and widely used. Libra, by getting the attention of all of the world’s regulators, will hasten the coming of the regulatory resolution of cryptocurrencies.” Cameron and Tyler Winklevoss, the founders of crypto exchange Gemini, are perhaps better known as the twins who sued Mark Zuckerberg for allegedly stealing their idea for Facebook. Despite this checkered history, the Winklevoss brothers are upbeat about Libra. “It’s very positive for crypto. A company the stature of Facebook actually talking about crypto demystifies the word and makes people feel a lot of more comfortable,” Tyler Winklevoss told CNBC’s Fast Money. He also advised Zuckerberg to work with regulators, noting that “the right regulation allows innovation to flourish” and “the healthiest markets in the world are thoughtfully regulated.”
Pablo Soria de Lachica graduated from Universidad Tecnologico de Mexico (UNITEC) with an MBA, going on to specialize in international trading and ultimately become one of the most prominent forex experts globally. His extensive experience allows him to maximize profits for his clients by combining professional guidance and educational projects. He is currently collaborating with Kartoshka– a company bringing the latest technologies in sales, telemarketing, and customer support.
Pablo Soria de Lachica – Foreign Exchange Specialist: http://PabloSoriaDeLachicaNews.com
Pablo Soria de Lachica Compares Facebook’s Cryptocurrency Project, Libra, to Bitcoin: https://finance.yahoo.com/news/pablo-soria-lachica-compares-facebooks-020000159.html
Pablo Soria de Lachica Reviews the Main Features of Facebook’s Libra Cryptocurrency: https://www.marketwatch.com/press-release/pablo-soria-de-lachica-reviews-the-main-features-of-facebooks-libra-cryptocurrency-2019-08-25
SOURCE: Pablo Soria de Lachica
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