Binance Research: Facebook’s Libra Could Spark Additional Cryptocurrency Volume

Published at: June 18, 2019

Binance Research, the research arm of major cryptocurrency exchange Binance, claims that Facebook’s Libra stablecoin could spark additional cryptocurrency volume in a post published on its blog on June 18.

In the announcement concerning the release of the full report, Binance Research claims:

“Libra could spark additional cryptocurrency volume due to increased accessibility from both institutional players and everyday retail users.”

Furthermore, the post also notes that the researchers anticipate that the Libra will have a significant impact on both local and global markets, financial and economic industries, as well as in the cryptocurrency space. This influence will manifest after the 12 to 18 months that Facebook will take to integrate the asset into its services.

Binance Research also expects Libra to reshape the payments industry, be the basis of new financial services, advance greater financial freedom and lower capital restrictions worldwide, and defeat the hegemony of the dollar. The authors of the report also claim that, decentralized or not, Libra is still the first project of its kind:

“Backed by a basket of fiat currency-denominated assets in its initial release, Libra represents a first attempt at creating a world currency, on-chain or not, with everyday usage by billions of individuals and institutions across the globe.”

Lastly, the report notes that regulators and financial institutions could hinder the success of the project. Other decisive factors cited by the researchers are the ability to scale the Libra user base, public trust in the project, the system’s independence on Facebook and ability to provide reliable fiat on- and off-ramp solution.

As Cointelegraph reported earlier, Facebook has released the white paper for its long-awaited cryptocurrency and blockchain-based financial infrastructure project today.

Last week, the news broke that South American online marketplace Mercado Libre is working with Facebook on the social network’s Libra cryptocurrency project.

Tags
Altcoin
Cryptocurrency Exchange
Cryptocurrencies
Binance
Social Media
Stablecoin
Payments
Facebook
Libra
Related Posts
Facebook’s Libra Has Failed in Current Form, Says Swiss President
The basket of assets backing Facebook’s Libra stablecoin needs to change in order for the project to be accepted by regulators, according to Switzerland’s President. “Central banks will not accept the basket of currencies underpinning it” Reuters reported on Dec. 27 that Swiss finance minister and outgoing president Ueli Maurer said that Libra won’t be approved because central banks won’t accept the basket of currencies behind it. He concluded: “The project, in this form, has thus failed.” Libra’s conflict with regulators Earlier this month, Libra’s whitepaper was updated to remove dividends payable to those investors, aside from eliminating a potential …
Regulation / Dec. 28, 2019
European Commission Exec Questions Facebook’s Libra Stablecoin
Executive Vice President-Designate of the European Commission, Margrethe Vestager, has questioned the motives behind Facebook’s forthcoming Libra stablecoin. In an interview with the Financial Services Union of Denmark, a fragment of which was published on Oct. 1, Vestager addressed the possible impact from Libra’s launch — such as competition due to Facebook’s multimillion user base and distortion of competition in the payment services market. Vestager argued: "It's a pretty new thing that we are starting to question something that does not exist yet. But it is so far in the future that we cannot tell if this is going to …
Altcoin / Oct. 1, 2019
Billionaire Mark Cuban Says Facebook’s Libra a Big Mistake
Dallas Mavericks basketball team owner and billionaire entrepreneur Mark Cuban defined Facebook’s Libra stablecoin a big mistake in an interview with CNBC published on July 12. During his interview, Cuban commented on the social media giant’s cryptocurrency endeavors. He said: “I’m not a big fan of what they’re doing there. [...] I think it’s a big mistake.” Cuban reportedly explained that he is more concerned about Libra’s global impact than the impact it will have in the United States. Per the report, he noted that “globally and in countries where there isn’t a lot of rule of law, or a …
Altcoin / July 12, 2019
EU Banks to Deploy Instant Payments System in Response to Competition From Libra
European Union banks could have an instantaneous payments system in place by 2020, Reuters reports on June 26. Per the report, real-time payments have been possible in the eurozone since 2017, but only about half of the banks in the bloc adhered to the initiative. Still, Reuters notes that adoption may accelerate now that Facebook’s Libra stablecoin is shaping up to be a competitor to local banks. Director general of the European Payments Council (EPC) Etienne Goosse reportedly said that — regardless of the success of Facebook’s Libra’s project — competition from technology firms was here to stay, and banks …
Altcoin / June 27, 2019
Libra Might Become Unrecognizable by Navigating Regulatory Concerns
Amid the regulatory storm facing Libra, the project’s hierarchy is looking to change one important detail of the payment system: using fiat-pegged stablecoins rather than a token supported by a basket of national currencies. The Libra Association says such considerations are part of efforts to create a more agile payment platform. Meanwhile, the furor over the controversial Libra has begun to take a more political undertone, both within and outside the United States. Arguments for and against the project now seem to include issues surrounding the trade war between the U.S. and China. In Europe, China’s response to Facebook’s crypto …
United States / Oct. 28, 2019