There is no doubt that Facebook’s so-called “crypto opportunity” comes with high expectations. People in the digital currency space are anticipating what the social media giant’s upcoming project has to offer. Interestingly, analysts from RBC have some interesting remarks.
An Important Initiative
According to Mark Mahaney and Zachary Schwartzman of RBC Capital Markets, Facebook’s crypto could just be one of the “important initiatives” when it comes to unlocking revenue streams and new engagement. The two experts are confident that the tech firm will be using the digital currency for applications, commerce, gaming, and payments. All of these will be done across the social media network’s ecosystem. And, of course, it will also cover the company’s very own encrypted messaging service and image-based social media platform WhatsApp and Instagram, respectively.
The two also repeated previously reported expectations that the social media giant will be releasing their crypto’s white paper come June 18. The decision to do so, according to the two experts, would follow Satoshi’s footsteps in an attempt to convey and explain the fundamental protocols which will underpin the project.
RBC is expected to release its own analysis of the project’s white paper. According to Mahaney and Schwartzman, this analysis will serve as a means for investors to be able to analyze all underlying “crypto-economics” of Libra, which is the codename of Facebook’s crypto project.
Better and Easier Than Bitcoin
Although nothing has been set in stone, the crypto is believed to be a stablecoin and will be backed by a deluge of global fiat currencies. Facebook has been developing it for at least six months now, although the tech firm said that the inception of the project started as far as the end of 2017. During this time, the company was already entertaining the idea of entering the crypto space.
Apparently, with the existence of Libra, Facebook will give employees the opportunity to acquire their salary via digital currency. It remains uncertain, however, if the multi-billion company will provide incentive packages in GlobalCoin.
Many experts agree that Libra is Facebook’s way of luring people away from Bitcoin, which is the world’s leading digital currency. Interestingly, though, the company is not alone in this narrative – almost all tech firms in the industry are trying to do so. The goal, according to these experts, is to give people a much better, easier digital currency. It is definitely interesting to see just how much an impact Libra will bring.