According to Bloomberg, Michael Novogratz, formerly a Wall Street investor, is all for the project, which intends to democratize finance and push the world to adopt decentralized systems. Novogratz said that this venture “credentializes crypto”, as Libra involves massive, heavy-hitting corporations: Visa, PayPal, Spotify, Uber, Lyft, Booking Holdings, and a16z to name a few.
Since Facebook released its stablecoin Libra on Tuesday, crypto industry insiders and the public alike have been waiting with bated breath for what some of the world’s most powerful people and those embroiled in all things Bitcoin (BTC) have to say about it. Interestingly, Bitcoin’s bulls have expressed excitement about the corporate-backed digital asset.
“It is now a matter of time before crypto and blockchain are part of both the consumer and financial infrastructure of the world. This is extremely bullish for Bitcoin and the whole ecosystem.’’
Others expressed a similar sentiment, with Circle’s Jeremy Allaire stating that the launch of Libra’s white paper is the transition point where there will be a newfound push for open finance, decentralized platforms, and crypto and blockchain more broadly. Digital Currency Group chief executive, Barry Silbert, went as far as to say that the launch of Libra is cryptocurrency’s “Netscape” moment, whereas this Facebook project will “go down in history as the catalyst that propelled digital assets (including Bitcoin) to mass global consumer adoption”.
As reported by Ethereum World News, analysts expect for Libra to be extremely bullish for Bitcoin for the following reasons: Libra will catalyze the creation of proper digital asset regulation; will act as a Bitcoin onramp; promote the development of cryptocurrency infrastructure; give users reason to get involved in digital ecosystems; and provide education about these new technologies.
Governments Push Back
While cryptocurrency executives seem all for Libra, governments and their representatives aren’t all so sure.
Maxine Waters, a House Representative, has called for Facebook to halt Libra in its tracks. She is fearful about “national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies,” citing Facebook’s “troubled past” (privacy imbroglios).
And more recently, the Senate’s Banking Committee has, according to crypto lawyer Hailey Lennon, scheduled a meeting with Facebook on July 16th for discussion of the firm’s plans in cryptocurrency.
Across the pond, a lead financial regulator in Russia, Anatoly Aksakov, claims that Libra will not be legalized in the nation.
He believes that the cryptocurrency may actually harm traditional finance. Aksakov adds that he intends to restrict the creation of platforms that allow for the purchase of Libra, but noted that he wouldn’t look to crack down on foreign services operating in Russia.
Mark Carney, the Governor of the Bank of England, has pledged that Libra will be heavily scrutinized and regulated, citing the cryptocurrency’s potential to be widely adopted from the get-go.
French Finance Minister Bruno Le Maire followed suit with a similar comment, claiming that under no circumstances should Libra “become a sovereign currency.” Le Maire elaborated that he is worried about how this new digital asset can be used to harvest data, launder money, and finance terrorism:
“This money will allow this company to assemble even more data, which only increases our determination to regulate the internet giants.”