Libra, Facebook’s new crypto and rival to Bitcoin, the dollar, banks, businesses like PayPal, and stablcoins all at once, captured the entire world’s interest yesterday. The crypto industry was divided on whether or not the move would benefit the ecosystem at large, or if it could potentially destroy Bitcoin and altcoins.
The concerns and hope may be for naught, as Libra may never actually see its planned 2020 rollout. According to venture capitalist Ari Paul, Facebook’s crypto only has a 50/50 chance of ever seeing the light of day, and that regulatory hurdles and lobbyist blockades may interfere with Mark Zuckerberg’s plan to replace create the first widely adopted version of digital money.
Facebook Crypto In Jeopardy Already, 50/50 Chance of Launching
Libra was announced yesterday morning by Mark Zuckerberg to mixed reactions. Regardless of your stance on if the news was positive or negative for the crypto industry, there’s no denying the significance a major mainstream tech firm that’s used by the public masses daily will have on the entire ecosystem.
But that’s only if it ever launches. And according to one venture capitalist, there’s only a 50% chance Libra ever launches due to the “dozens of different legislative and regulatory authorities that will explore blocking it.”
I have no special insights, but my best guess is that Libra is 50/50 to ever launch. There’s dozens of different legislative and regulatory authorities that will explore blocking it. Bitcoin and other permissionless cryptocurrencies win to it launching.
— Ari Paul ⛓️ (@AriDavidPaul) June 19, 2019
Such a scenario isn’t difficult to imagine, with Libra’s announcement not even being in circulation 24 hours yet, when a top democrat in Congress, House Financial Services Committee Chairwoman Maxine Waters (D-CA), demanded that Facebook halt the development of Libra.
Senator Sherrod Brown (D-OH) also plans to sick government watchdogs on Facebook, citing that they are “already too big and too powerful, and it has used that power to exploit users’ data without protecting their privacy.”
The Government Can Stop Libra, But They Cannot Stop Bitcoin
The differences between Libra and decentralized cryptocurrencies are already appearing, even just 24 hours after Facebook’s big announcement. Libra is already at risk of being blocked by governments, who may or may not be influenced by big banks though their lobbying power.
Related Reading | Bitcoin to Surge Past $20,000? Facebook’s Libra Could Send BTC Flying
Bitcoin on the other hand, cannot be stopped. Bitcoin was designed to be outside of the reach of the governments, banks, and superpowers that have controlled money and humanity through it for centuries. It’s already showing its resiliency next to Libra, and proves that being borderless, decentralized, and unstoppable is more valuable than most consider.
43,000 bitcoin were moved today in a single transaction.
That's $400,000,000 moved for a $2.38 fee that took about 15 minutes.
No government, bank or third party had to verify the transaction, nor could they have stopped it.
The true power of bitcoin. ?
— Rhythm (@Rhythmtrader) June 17, 2019
While Libra may not ever reach its planned 2020 launch, in the meantime it’ll do wonders for the crypto ecosystem by exposing it to the masses, governments, and more. If it does launch, it has a real chance at replacing money. If it doesn’t, there are two main scenarios at play: Libra brings negative attention and heavy-handed regulation to the space that harms Bitcoin; or Bitcoin continues to unexpectedly outshine Libra, demonstrating the benefits of a borderless, decentralized cryptocurrency to the entire world on a grand scale like never before.