Facebook’s Libra ‘crap coin’ could be blessing in disguise for crypto space

Facebook’s much hyped Libra initiative is problematic in a number of ways, but it could have a positive impact on the crypto market. That’s the view of On Yavin, CEO and Founder, Cointelligence.

“The Facebook coin is a fake cryptocurrency. They are calling it cryptocurrency because it is a buzzword. It may be a digital currency, but it is not a cryptocurrency. It is a crap coin,” he says.

It will by definition be largely centralised, he adds. Facebook has a huge trust problem after its poor track record in securing its users’ personal data. And it is partnering with big companies such as Uber, PayPal, Vodafone and Visa to create Libra. In a nutshell, big corporations will continue to control the system and exploit users, Yavin argues. “That is the opposite of what a real cryptocurrency should be,” he comments.

At the same time, however, the launch has exposed huge numbers of people to cryptocurrencies and the world of blockchain. The space could start to be viewed as more serious and credible. Up to this point, conversations have been nearly exclusive to technologists. Now with the launch of Libra, Facebook is potentially making cryptocurrency available to its two and a half billion users.

“I think that the positive side is that Libra will get so many people introduced to the new generation of digital payments and some of them will want to learn more about real cryptos like Bitcoin and Ethereum,” Yavin concludes.