The digital coin introduced by Facebook Inc. is not competition for Bitcoin; it’s proof that cryptocurrencies will play a valid role in today’s economy.
That’s the view of some of the biggest names in the crypto industry. The heads of investment firms, trading companies and technology outfits say Libra, the token Facebook is developing in partnership with the likes of Visa Inc. and Uber Technologies Inc., is a boon for Bitcoin and the broader crypto sector, although some say they’re nervous about whether Facebook will have access to financial data and how that will be regulated.
The billionaire co-founder and chief executive officer of Galaxy Investment Partners LLC, said:
Libra “is a game changer in that it credentializes crypto. We now have many of the largest companies in the world participating. It is now a matter of time before crypto and blockchain are part of both the consumer and financial infrastructure of the world. This is extremely bullish for Bitcoin and the whole ecosystem.’’
Chief executive officer, Circle Internet Financial, the crypto trading firm and stable coin issuer backed by Goldman Sachs Group Inc:
“This is a massive inflection point for the crypto industry -– it’s an extremely positive development for this broader movement towards decentralized platforms and open finance, and the ability to connect every person in the world to an entirely Internet-based financial system. It is the transition point where people start to realize that crypto and this infrastructure is going to help change the way the international economic system functions.’’
The co-founder of the Ethereum blockchain platform and founder of ConsenSys, a Brooklyn-based Ethereum application developer, said:
“Even if the system turns out to be operated in a centralized or federated model -- which seems nearly certain at this point -- it would be a good stepping stone for people towards taking further control of their assets and identity and getting more comfortable with peer-to-peer payments managed from their own wallet. We started educating enterprises on the basics of decentralized technology about four years ago. I’ve said this before: if we don’t bring in the rest of the world, then I think we’ve failed.’’
Founder of the Los Angeles-based crypto hedge fund Ikigai:
“Through Libra, Facebook will introduce its 2.5 billion monthly active users to digital assets, which is a strongly positive tailwind for the decentralized crypto asset landscape. While Libra may compete with existing stable coins, it in no way competes with Bitcoin - it is a gateway to Bitcoin.”
Chief investment officer at digital assets firm Arca in Los Angeles:
“While there are a lot of polarizing opinions on the significance of Facebook and even JPMorgan’s entrance into the digital asset world, the fact of the matter is their day 1 will be bigger than any other crypto company’s year 10. As a result, it is undeniable that Facebook is a positive for the crypto industry.”
The founder and chief executive officer of Digital Currency Group said June 14 on Twitter :
“The launch of Facebook’s cryptocurrency will go down in history as the catalyst that propelled digital assets (including Bitcoin) to mass global consumer adoption. Will be remembered as just as important -- and transformative -- as the launch of the Netscape browser. Buckle up.’’