There has been a lot of speculation over whether Facebook would release a cryptocurrency after its ad ban in 2018. At that time, I had speculated that they could either create their own coin, or that they could integrate Litecoin. Though this integration now looks unlikely, it is interesting that the release of the Libra white paper is timed just a few weeks prior to the halving of Litecoin, scheduled for August 6, 2019.
According to Tech Crunch, the white paper will explain the basics of the new Facebook coin. Laura McCracken announced the white paper debut in the German magazine, WirtschaftsWoche, and indicated that the crypto would be pegged to a basket of digital currencies.
Facebook’s blockchain team has been hard at work, but the company has yet to provide an official comment on the project, beyond the white paper review. The question is whether Libra brings any new value or utility to the market. An advantage that Facebook has is an existing base of advertisers. It’s possible that they may link the coin to their ad server and its payment system, enabling the company to save on expensive credit card processing fees. Another possibility is to link it to likes and other user interactions on the platform. Indeed, if Facebook users receive coins for engaging on the platform, it could keep them addicted while other social media platforms like MeWe try to capture some of its marketshare.
According to The Information, the BBC incorrectly suggested that the new crypto will be called GlobalCoin. Libra makes a lot more sense in terms of semantics, and coolness. It’s expected to be a stablecoin, making it more likely as a medium of exchange for the platform, rather than an investment vehicle.
Dennis Consorte has an appetite for news and information about cryptocurrencies, blockchain, IoT, fintech, adtech, martech and other technologies. He also has over 20 years’ experience in digital marketing and content strategy.
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