Facebook’s Libra Cryptocurrency Could Disrupt the Dollar, Claims Binance

Binance Research has published an in-depth review of the highly-anticipated ‘Libra’ cryptocurrency by Facebook. Binance Research makes claims on the future of Libra along with some general observations on what’s known about the cryptocurrency as of now.

What We Know So Far About Libra

Facebook’s Libra Coin, according to Binance Research, will be backed by a collection of financial assets known as Libra Reserve. Scheduled to be released in 2020, the cryptocurrency will be backed by four fiat currencies: USD, EUR, JPY, and GBP. The consensus mechanisms for the network will rely on a 2-token system based on a Proof-of-Stake (PoS) model. There will be the Libra currency for payments, and another securities token for accredited investors. Within the next 18 months, the cryptocurrency will be incorporated into Messenger, WhatsApp, and Facebook.com. All of this will be managed through the Calibra wallet. Binance Research predicts that, ultimately, the cryptocurrency will have a tremendous impact on the entire industry. In short, it will expose cryptocurrencies to over 2B people, most of whom have never used digital currencies before.

Libra: Medium to Long-Term Predictions

Binance Research outlines a few medium-to-long term predictions for Libra. In the medium-term we can expect Facebook to cement its place as a provider of “open-source tools for digital apps, sites, and e-commerce.” The report also argues that the cryptocurrency will likely spark additional volume in cryptocurrency trading. The increased accessibility from both everyday consumers and institutional players into the cryptocurrency world is to be expected. In the long-term, we could see some seismic changes.

• A complete reworking of the global payment system. Banks will likely feel threatened by alternative payment facilitators like Libra.
• New financial services across the board. We could see Libra open the floodgates to new decentralized applications, or from major conglomerates looking to release their own cryptocurrencies.
• Money will move as quickly as information. This is ultimately the goal of Libra.
• A disruption of the dollar as the global currency of the world. If the cryptocurrency is actually successful, then we could see a reduction in our reliance on the dollar for global commerce. New units of account for trade could very well come into existence.

In conclusion, Libra has the institutional backing to be the most accessible cryptocurrency ever created. If successful, it will not only boost the cryptocurrency industry as a whole but will upend payments and global commerce as we know it today. Libra is targeting mass adoption, and it will be interesting to follow its progress in the coming year. Do you believe Libra will ultimately be successful? Let us know your thoughts in the comments below.