Facebook to launch a global coin – the impact on the cryptocurrency industry

  • February 10, 2021

The company officially began its cryptocurrency journey on June 18, 2019. The company’s CEO Mark Zuckerberg himself unveiled the project’s White Paper and also said that Libra will be the expected digital currency. The scheduled schedule for Libra cryptography would have been in the first half of 2020, but the coin was launched in advance. It is assumed to be a currency that has no resistance and is available to millions of people who do not have banks. 

In the past, the social media giant asked for support from venture capitalists to invest as much as possible in their cryptocurrency project. It was also revealed that Facebook is talking about using the money as collateral for the cryptocurrency. The company designed the coin to maintain a stable value associated with the currency basket in bank accounts. However, only time will tell whether Libra will become the lucky object of these people or not. 

Legitimacy of virtual currencies

For some cryptocurrency enthusiasts, there is a clear advantage in believing that Facebook’s access to digital currencies could potentially accelerate their widespread adoption from a regulatory point of view, as it is one of the high-tech companies. The first step of the social media giant into the virtual currency industry will support it among the troops and give them more legitimacy over time. Therefore, everyone assumes that Facebook has brought digital currency into the mainstream, which can also help these currencies increase legitimacy. When the social media giant gains legal status, these virtual currencies are likely to be widely accepted around the world; In addition to this, it is also expected that some countries could even lift their bans on these cryptocurrencies. 

Positive impact on the cryptocurrency and its growing demand among the population

The scale suddenly took the storm shortly after it was fired. People have noticed an increase in demand for the best-selling Bitcoin encryption currency since Facebook announced the launch of a global cryptocurrency. It seems that Bitcoin’s claim will continue for some time. The reason for this increased demand is believed to be the access of the social media giant to the world of encryption and its 2. 7 billion users who are helping more people explore virtual currencies. In addition, it could potentially help increase the adoption of a new technology called Blockchain. This new technology is an accounting system that has not yet been able to achieve the expected exposure. The introduction of Facebook’s 2. 7 billion users caused a kind of horror in regulatory circles, which eventually led to the demand for this new cryptocurrency and Blockchain concept.