Cryptocurrencies

Facebook’s Libra to launch in January 2021 – Cryptocurrencies

Libra is back in the spotlight. Despite glaring hostility from the US Congress, Mark Zuckerberg’s stablecoin will be well launched in January 2021. The first global stablecoin was born.


News from Libra

Stablecoin is back on the table after being put on the back burner to skepticism from US MPs. They were openly worried about this competition against the dollar. They had not hesitated to point out that the dollar was a very practical weapon to avoid sending soldiers …

Indeed, any dollar transaction is subject to US law, so a business trading in dollars with an embargoed country is subject to sanctions. BNP Paribas still remembers it. The French bank, for example, was fined $ 9 billion for facilitating transactions with Iran …

According to the Financial Times, a revised version of libra is expected to launch soon. Zuckerberg scaled back its globalist ambitions and finally settled for a dollar-only stablecoin.

As a reminder, in its initial version, the libra was to be backed by a basket of currencies made up of 50% dollar, 18% euro, 14% yen, 11% Pound Sterling and even 7% Singapore dollar. A strange basket that will ultimately be made up of 100% dollars …

“Currency substitution”

The big fear is that people around the world would rather keep their money in Libra form than their local currencies of little value abroad. This is the famous “currency substitution” problem. That is, the fact that Libra can substitute for the currencies of certain states and poses major financial risks.

We can read on page 10 of the Libra Association white paper that “ If the adoption in a region without stablecoin raises concerns about currency substitution, the Libra Association could work with the central bank and relevant regulators to create a stablecoin that can work on the Libra network.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

So, if Facebook has abandoned the idea of ​​creating a stablecoin of the same kind as the IMF’s SDR (special drawing right), it still aims to provide a global network available to all stablecoins central banks want to create. The Libra is therefore nothing more than a SWIFT network for stablecoins, and comes out on top of the Chinese who hoped to promote the internationalization of their currency in this way.

As a reminder, Facebook already has 2 billion users. Libra could therefore quickly achieve mass adoption due to the huge network complemented by the other members of the association, Uber, Spotify, Uber, Coinbase or even PayU, for the best known.

What impact on Bitcoin?

This announcement, in the aftermath of formal attacks from the IMF and the FED, probably isn’t going to help Bitcoin (BTC). At least in the short term!

After the announcement effect, everyone will come to their senses and realize that Libra is a stablecoin backed by the fiat dollar currency. Nothing has changed … You are actually in the presence of a squared shitcoin. It is a fractional reserve system backed up by another fractional reserve system …

Libra is worth absolutely nothing compared to Bitcoin. Facebook, by tricking people into thinking they are launching a cryptocurrency, will inevitably lead more people to take an interest in what a real cryptocurrency is. They will then fall on Bitcoin …

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Libra is a Trojan horse. It will not take long for those who do consider the issue to educate themselves on the issue of currency scarcity. Sooner or later they will realize that the value of Libra is simply a representation of the value of an infinite number of dollars and will turn to …

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