The entry of Facebooks Libra coin into the crypto sphere is seen to have ignited the digital money market politics. Many market analysts have indicated that the US dollar dominance is headed to a close. With the blockchain technology revolutionizing a big chunk of the financial sectors, there are fears that Libra, backed by Facebook popularity and visibility is already sending a strange signal to the sector.
Crypto has gotten into the way of life for both newbies and tech-savvy and many high profile institutions have tried to stay away from the technology but this has not slowed down the interest in the digital currency. This has seen Mark Carney, the Governor of the Bank of England; vouch for the creation of a “common multipolar reserve currency system” for all central banks across the globe.
Creating Space for Crypto and Facebook’s Libra
With the increasing crypto adoption, the user remains the determinant and a choice between crypto and fiat is set to dominate the market. Investors are crypto-aware and they will definitely shift focus on a currency that is fuss free, fast to transact and offer a better value proposition.
Libra is yet to hit the exchanges but the interest it is generating is giving it an upper hand over older digital coins, Bitcoin included. Investors are watching the market and some are beginning to doubt whether investing in BTC was a bad decision.
Trust Issues and Libra Adoption
If you are social network goer, you might not trust Facebook’s Libra project. The social network, which is the architect of the Libra coin, has had its trust issues and many social networking lovers might not trust the Libra project with their money. This is a huge hurdle for the coin that is seeking to earn global confidence.
The rejection that Libra is facing to become a global coin darling is not nothing new. The UD dollar global dominance did not come in a silver platter and has faced its trust issues from the political front until where it is today. What many Libra critics are missing is the fact that the coin has its route to market cut out; it is riding on the Facebook user base which is set to beat the USD popularity hands down.
Global Economy Focus
At the moment, the trade and currency wars are hurting the global economy. The US-China trade war could be hurting the fiat economy but a huge boost to the digital money economy. It is clear that these two need to strike a middle ground for both economies to thrive.
A co-existence between the US dollar and Libra will only give the later more exposure and usability. The current war waged against Libra is a clear show of how centralized systems, backed by governments; are scared of technological changes that the crypto operatives is injecting into the global economy.
Libra might not takes off soon, but once it hits the market, both crypto goers and fiat users will have an option to invest and do businesses on a level playing ground. The USD might be hitting the Chinese Yuan the G-spot but has failed in bringing BTC down and stands no chance to derail Libra.
Libra, Facebook, US dollar, Crypto