Facebook’s Libra Roundtable Discussion – The Innovative Financier
A recount of Facebook’s Libra Roundtable Discussion organized by The Innovative Financier (TIF) in partnership with VirgoCx, on Nov 11th, 2019
On November 11th, 2019, Fintech enthusiasts and professionals alike gathered for an engaging discussion on Facebook’s newest project, the Libra stablecoin. Hosted by The Innovative Financier (TIF) in conjunction with our partner, VirgoCX, this event served to allow attendees to share their opinions on this controversial topic while learning about stablecoins and their potential to revitalize the cryptocurrency space.
What are StableCoins?
If you are new to this topic, a stablecoin is a type of cryptocurrency that is price stabilized by using collateral to reduce volatility. The most common types of stablecoins include those that are fiat, crypto, commodity and non-collateralized based. Stablecoins leverage the best features of cryptocurrencies (i.e., cryptography and decentralization) while significantly reducing the volatility associated with cryptocurrencies by pegging the value of the stablecoin to a basket of crypto or non-crypto assets. As a result, many see this as the optimal solution for digital currencies including one of the largest tech giants of our generation, Facebook.
The Libra Project & Ecosystem
On June 18th, 2019, Facebook officially unveiled a new project, dubbed Libra, which saw stablecoins as the solution to solve the financial inclusion equation. Intended to be released in 2020, Libra is devised primarily to help those who do not have access to financial services, the unbanked and the underbanked.
The Libra ecosystem consists of a network of users, nodes’ stakeholders and council members. Each user will use the Calabria Wallet, a privately owned subsidy of Facebook to purchase the stablecoin. Once purchased, validator nodes will work to add new blocks of transactions to the chain. Each unit of currency will be backed by fiat dollars comprised of the $10MM individual contributions of the council members. These funds will comprise the Libra Reserve and will both drive revenue and maintain the operation of this project.
Some of the main benefits of this project include mobility, stability and scalability aligning with Facebook’s objectives of creating a faster, lower-cost, more accessible and more connected global financial system.
Is the Libra Project Truly Feasible?
The Libra project was met with much opposition and skepticism. One clause of Libra’s mission is to gain support from regulators. It intends to proceed only when all regulatory concerns are addressed and the appropriate approvals have been granted. Due to the project’s global nature, regulators are hesitant to grant approval fearing that Facebook’s history of privacy violations among many other issues will inhibit the project’s success.
The guests of the roundtable discussion engaged in a riveting debate to discuss the likelihood and feasibility of Libra’s execution. While most guests agreed that if executed, the Libra project could have massive benefits, many were skeptical that Facebook could overcome the barriers to make this project a reality. Within minutes of the roundtable, the room was divided between those willing to prove that mitigating the risks that accompany a project of this scale is nearly impossible, and those who believe that due to its prominence and mass adoption (i.e. billions of monthly users), Facebook would be the one to successfully execute this project.
The Future of Stablecoins
This debate was followed by a deeper insight into the trends shaping the stablecoin environments from TIF’s partner VirgoCX. Currently dominated by startups’ stablecoins as it is the case of the USD backed stablecoin Tether, recent trends show drastic changes with more established players like IBM racing to establish their presence in the cryptocurrency environment. This competition, however, extends far beyond businesses.
While stablecoins are still at their infancy, countries are rushing into the stablecoins’ wave in the hopes of gaining an upper-hand in the global race towards economic dominance. Such is the case of the Digital Currency Electronic Payment (Dcep), China’s very own take on stablecoins expected to launch in 2020. From the original cryptocurrency created a decade ago (Bitcoin), to the now more than 5,000 cryptocurrencies including stablecoins worth close to $USD 190 Billion (as of December 2019), there is no telling what impact a successful Libra or the proliferation of stablecoins will have on the cryptocurrency ecosystem and the global economy in the future.
As for now, all agreed that for those pushing every day for the mainstream adoption of cryptocurrencies, Facebook’s Libra project controversy and the interest it generated is definitely a much-welcomed catalyzer.
Pro or Con Libra?
The Libra Roundtable discussion was both an informative and engaging way for participants to discuss one of the biggest topics in Fintech today, the Libra Project. Each attendee had the chance to “network” with others, “learn” about the stablecoin environment and “share” their opinions, aligning with the TIF motto: “Learn, Network and Share”.
Overall, this event truly delivered on its objectives and gave participants the insights to confidently answer the following question for themselves: Are you Pro or Con Libra?
To learn more about The Innovative Financier or join the community, please visit:
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Authors: Cassi-Ann Hutchinson, Raghad Alkhatib
Editors: Othalia Doe-Bruce, Carlos Dominguez
Published at Tue, 31 Dec 2019 05:47:50 +0000
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