Will Facebook’s “Libra” cryptocurrency outcompete Bitcoin?

Peter Schiff, the CEO of brokerage firm Euro Pacific Capital, believes Facebook’s Libra cryptocurrency will outcompete Bitcoin on stability and fees. BTC advocate Anthony Pompliano disagreed, suggesting the two would help each other grow.

The controversy is over Facbook’s coming “Libra” cryptocurrency. Purportedly named as a dig at the Winklevoss twins’ Gemini exchange, the digital asset will be a stablecoin supported by a basket of international currencies.

The cryptocurrency will reportedly be transferable between Facebook products with zero fees, giving the social media platform a unique position in the financial services sector. Whether or not the cryptocurrency will compete with Bitcoin remains a matter of speculation.

As Anthony Pompliano retorted to Peter Schiff:

Who will “Libra” serve?

With one of the largest networks of people in the world, Facebook’s has a competitive advantage for a company wanting to provide global financial services. The company secured $10 million apiece in funding from major backers like Visa, Mastercard, Paypal, and Uber and is setting up a conglomerate to govern its network. The remittances industry alone totaled $689 billion in 2018, according to the World Bank, and could be a service Facebook aims to provide.

Related: PayPal, Mastercard, Visa, Uber and Stripe investing in Facebook’s new cryptocurrency

On the other hand, one could argue that “Libra” targets an audience never intended to be served by a decentralized currency like…

Source Link