Facebook’s newly announced stablecoin has been the focus of the entire industry, as many experts believe it could act as a gateway for Bitcoin for its 2.4 billion-strong user base. Exposure to a relatively stable digital asset such as Libra could make people interested in other, more decentralized and privacy-focused cryptocurrencies.
Libra could be a boon for crypto
Facebook’s newly announced cryptocurrency project, Libra, has been at the forefront of media attention in the past couple of weeks, with the coverage intensifying as more details about the platform were revealed.
While many were quick to dismiss the effect Libra could have on the broader crypto market, it seems that the highly-anticipated digital asset is already making waves throughout the industry. Despite the problems it faces—which include centralization and lack of privacy—Libra was still celebrated by some in the crypto community.
Garry Tan, the managing partner at Initialized Capital, said that Libra’s launch was a “big day” for the crypto industry, as it has the potential to transform the crypto market. Tan pointed out that Facebook has 2.4 billion users, while WhatsApp, the messaging giant owned by Facebook, has over 1.5 billion. Recent studies estimate the number of crypto users worldwide to be roughly 35 million.
That means that a large percentage of those users could get exposure to other cryptocurrencies through Libra, drastically increasing the number of crypto users worldwide.
Tan noted that while the Libra whitepaper was in no way perfect, its ability to increase the reach of other similar projects by tenfold is a once-in-a-decade opportunity that shouldn’t be ignored.