E Why Facebook's Cryptocurrency Libra Wasn't Well Received

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Pound, yen, euro, the "great" dollar...the list can goes on but no one can dispute that currencies have power. Every economy has been founded on the strength of its currency. However, we tend to push this fact to the side.Let's look at it like this: The concept of capitalism is popularly defined as

"the economic collaboration between mere acquaintances for the purpose of mutual advantages."

However, the technological structure of this century is reshaping such a definition quite rapidly. In this era, one establishment can have more financial capability and control over universal commerce than even over a prosperous government. Enter...

Facebook’s Libra

Those following the developments of crypotcurrency were initially abuzz about Facebook (FB). Specifically Facebook's Libra (LIBRA), known internally at Facebook as "GlobalCoin". And for some, Libra is still a global phenomenon, at least at the moment. 

Facebook’s cryptocurrency Libra aims to supplant other digital currencies and eradicate "dollars". However, it seeks to peg its value against a basket of established currencies such as the US dollar, Yen, and Euro. This will ensure that Libra's value remains stable.

By contract Bitcoin (BITCOMP) is highly volatile, constantly changing as a result of investors' interest,  Libra doesn't. It shows the entire economic standing of the five countries that own the currencies. Only a worldwide recession can cause the Libra to be unstable. Additionally, a 28-member nonprofit organization, The Libra Association was formed in June 2019 to oversee the cryptocurrency’s creation and eventual rollout. The association was meant to included highly respected companies such as Paypal (PYPL), Visa (V), Mastercard (MA) eBay (EBAY) and others. But many of these companies have left the association citing political pressure. However the Libra Association still boasts 21 members, including Shopify (SHOP), which announced last week it was joining the association, the first addition since the mass defection.

The backlash faced by Libra has been fierce. Let’s have a closer look at what went wrong...

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Currency Trader 1 month ago Member's comment

I agree that #Libra's biggest obstacle is Facebook's credibility issues. But beyond that, I liked the idea of a regulatory body and being pegged against a basket of stable currencies. Bitcoin may be a great bet as an investment, but it's volatility makes it horrible as an actual digital currency.

Michele Grant 1 month ago Member's comment

I agree, no one wants X amount of their money to be able to buy a car one day, and only a pizza the next.