The anticipation for Facebook’s cryptocurrency Libra is already having a rippling effect on the blockchain-based industry.
Following the declaration last week, Bitcoin has been seeing a resurgence in value, with the trailblazing coin reaching a $10,000 value for the first time since its historic 2017 record and crash.
But before Libra can touch the market, it has a mountain of regulatory hurdles to pass in dozens of countries. And so far, regulators’ responses to Facebook’s courageous discovery are so miserable that even the tech company itself is starting to question the sustainability of this undertaking.
Libra is based on relatively new and unproven technology, and the laws and regulations surrounding digital currency are uncertain and evolving. Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue, Facebook said.
Nischal Shetty, founder of India-based crypto exchange WazirX, told Observer that “the entry by Facebook immediately provides a large validation for the entire crypto sector.”
Generally, whenever a large player enters a section, every other large competitor follows suit. With Libra, crypto is witnessing the opening of doors to mass adoption. Libra definitely gave that much-needed boost not just to Bitcoin price, but also to the entire sector as a whole, Shetty added.
CEO Mark Zuckerberg, at Facebook’s annual developers conference, suggested that the crypto project will be part of a mobile payment system that allows Facebook’s 2.4 billion users worldwide to send payments to each other without using third-party software.