Reinvent money. Transform the global economy. So people everywhere can live better lives. Facebook’s description of Libra has all of the high-minded self-confidence and overarching ambition you’d expect of the social media behemoth as it offers its own particular cryptocurrency outlook.
In October, politicians on Capitol Hill grilled Mark Zuckerberg about issues including the handling by Facebook of Libra users’ data and the siting of the Libra Association, the organisation that oversees the project, in Switzerland rather than the United States.
These criticisms are set against a background of longstanding concerns about Facebook’s privacy policies and advertising practices. Meanwhile, a number of founding members of the Libra project, including eBay and Mastercard, have deserted it.
Is cryptocurrency outlook on the up?
Criticism of Libra, Facebook’s first foray into cryptocurrencies, has been intense, but it has increased interest in this rapidly developing financial instrument and put the spotlight on its potential as an asset class. According to Azoth Analytics, a business research and analytics company, the cryptocurrency market was worth $856.36 billion last year.
Could a global and trusted stablecoin become an alternative to the US dollar? And who should run such an operation?
“The market valuation since then has fallen by over 75 per cent to a current level of $195 billion, during which time many coins or tokens have proved worthless or been removed from exchanges,” says Nick Cawley, crypto-expert at financial market news portal DailyFX.
“Indeed, many exchanges have also been shuttered due to poor management, hacks or illegal activity and the lack of trading volume to make the business economically viable.”
However, this brutal adjustment and purge has led to a maturing of the market and a calming of recent volatility is prompting a more positive, if cautious, cryptocurrency outlook in the markets. As a result, more wealth managers are being…