Facebook is by far the most significant social network, with its user base running in a couple of billions, and a presence in almost every country on this planet. Understandably, the giant entering the cryptocurrency space has made regulators across the globe worried and protest against it.
However, within the space, it’s totally a different ball game. Though none of the platforms have expressed it explicitly, there definitely must be some worries on Libra’s launch. Especially, since it is focused on providing an affordable global payments solution, cryptocurrencies which already have been serving this niche will be very keen on Libra’s future developments.
Let’s have a look at cryptocurrencies that could be possibly affected by the arrival of Libra:
- Ripple (XRP)
Ripple has been leading the crypto payments segment, and has taken giant strides in the last few months, striking crucial partnerships around the world. Its XRapid and XCurrent platforms have been pretty successful to say the least, and look suitable to grow.
The problem with Ripple is that a lot of its success depends on the user base of its partners, like Tata Consultancy Services backed BaNCS. Facebook itself has a two billion user base, and an additional billion on its WhatsApp messenger. This gives it a significant advantage over XRP, and the fact that it is a stablecoin makes it a much more reliable option for new entrants.
- Stellar Coin (XML)
Stellar Coin is another cryptocurrency which functions on similar lines of Ripple. The difference is that it also lets users transfer fiat currencies via its platforms in any pair. This means that a user can transfer a traditional currency like the USD, GBP or EUR, to another country. Stellar first transfers the fiat amount in XML, which is then transferred to the destination, and is transferred in to the local fiat currency. Transfer or tokens from fiat to crypto, and then crypto to fiat happens in real time.
Libra is stablecoin backed by various traditional assets like bank deposits and government bonds, which give it a solid back-up and stability. Moreover, founding members of the Libra include names like VISA, MasterCard, and PayPal, which giants of the traditional payments industry.
This gives Facebook’s cryptocurrency a grizzly-sized edge as VISA and MasterCard are the biggest payments processors in the world, and integration with them will give Libra opens the door to several thousands of use case scenarios.
- Bitcoin (BTC)
Some might argue that Bitcoin is the apex cryptocurrency, and hence, cannot be affected by a new entrant. This is an argument that hold its ground for a great part. However, there one thing which could even affect it.
No matter how much we deny the fact, Bitcoin has become more of an investment asset rather than a usable currency alternative. Despite a troubled 2018, heavy investments brought the bulls back. So how does Libra affect the Numero Uno?
Bitcoin is poised to reach $20,000 to $40,000 apiece by the end of 2019. Therefore, it can grow between two to four times from the current price, which is just over $9,000. A good deal, it seems. Libra is expected to be launched an amount which would be nowhere near BTC, as affordability is one big motive. Therefore, it will appeal to more users to use it.
But just imagine, if it becomes a trend among social media users to own Libra tokens, which is very much possible in today’s day and age, prices can shoot up several times. And given the size of potential users, even a small percentage of users can make a world of difference in pricing. So wouldn’t it be a good investment option then? Only time will tell.
