The Chairman and Editor-in-Chief of the Forbes media empire, Steve Forbes, seem to be in open support of Facebook’s planned Libra cryptocurrency. Mark Zuckerburg, the founding father of Facebook, has been under a lot of pressure from US and European regulators regarding his plans to launch what could potentially become the world’s most used cryptocurrency.
As a result of the regulatory backlash, a large number of that had made a clear indication of their interest in participating in the Libra project have withdrawn. Since then, the work on Facebook’s cryptocurrency is done independently of Facebook as an entity, and is now in under the control of a number of companies (which includes Facebook) and non-profit organisations.
According to Steve Forbes’ opinion, the motivations behind the political and bureaucratic fallout that Zuckerburg and Facebook are faced with are pretty simple. The successful launch of Libra would, for banking institutions, be the same as letting the fintech version of Uber and Lyft waltz through the door grab the whole cake.
Because Libra would have the back of a diverse reservoirs of fiat currencies, it would be the most stable of the stable coins, effectively nullifying the risk of rampant volatility associated with digital currencies.
“Libra’s basket would still be vastly superior to anything else out there.” Said Forbes.
Another factor giving financial incumbents grey hairs is that, a fully functional Libra would give one Facebook user the ability to instantaneously send funds to any other Facebook user anywhere on the globe. This would completely cut out the sluggish and costly international remittance infrastructure currently in use.
As the situation currently stands, the regulatory onslaught has pushed the Libra project into a tight corner. Which, according to Zuckerburg, may not be advantageous.
“While we debate these issues, the rest of the world isn’t waiting. China is moving quickly to launch similar ideas in the coming months. Libra . . . will extend America’s financial leadership as well as our democratic values and oversight around the world. If America doesn’t innovate, our financial leadership is not guaranteed.” Zuckerburg said.
The Chairman of Forbes seem to share the same views.
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