For bitcoin — and for cryptocurrency brethren — a stretch of calm before the storm?
The official debut of a new cryptocurrency, Libra, may have stalled a rally in the marquee name in digital coins. Libra is the currency that will ride the new permissioned Libra Blockchain Network rails, also developed by Facebook.
The marquee name would be bitcoin, of course, which as of this writing was changing hands at a bit more than $9,100. That’s well above the low $8,000 levels seen earlier in the month, and yet off from the $9,250 levels seen just a day ago. Similarly, some other cryptos of note, among them ethereum (the second largest cryptocurrency as measured by market cap, at $28.5 billion) is off 2.7 percent on the day, to $266.40, as reported by Coinbase. XRP is trading down several basis points to about 43 cents each.
In astrology, the sign of Libra is represented by a set of scales. And while Libra’s launch has not spelled doom for cryptos, sending them crashing from the zenith of a rally that has been underway for several months, neither has it given a “floor” for cryptos.
A scale, of course, weighs and gives truth to things being compared, on a relative basis.
The details include the fact that Facebook has structured Libra so as to distance itself from being the sole force operating the network and the currency. Libra assets, including the currency and its reserves, will be managed by an independent, non-profit association that includes, to start, 28 financial services and payments stakeholders, among others. Libra is governed by a Managing Director, a Council and a Board. No one Member has any voting power beyond one percent of the value of their shares. Each Member will be asked to contribute $10 million to help fund operations in order to have a seat at that table.
With the launch of Libra as a currency, the flag that crypto advocates now wave is one of awareness: As in, more people will be aware that…