Facebook's Crypto Currency Will Add Power to Bitcoin's Power!

Facebook's Crypto Currency Will Add Power to Bitcoin's Power!

According to news, leaks and allegations, Facebook (NASDAQ: FB) will soon launch the crypto currency project Libra, which users can use on their platforms (including Messenger and WhatsApp). Probably anyone with an account on these platforms will be able to trade for physical purchases, such as online purchases or any grocery store or restaurant.

Facebook announced that it would elaborate on the announcement of the expected crypto currency on June 18 and confirmed that the value of the crypto currency would be a “stablecoin bağlı that would be tied to a fiat currency basket.

Well, Facebook's crypto currency, what it means, what will change, what will bring with you, let's look more closely.

Facebook's crypto currency will be a good force in developing countries where the company wants to market its product…

So why? Because central banks in developing countries are often renowned for lack of discipline to maintain the value of de facto currencies that have lost their purchasing power. The best example of this is Venezuela, which suffered worse inflation than Germany after the First World War.

At this point, Facebook will provide citizens of developing countries with access to a more reliable store of value than government-backed currencies, and Facebook's crypto currency will indirectly bring fiscal and monetary discipline to developing countries. This will indirectly improve the lives of many people.

Facebook crypto currency will lead to populist calls for the cancellation of subsidies to banks at the heart of the US banking system…

Facebook's crypto currency will lead to populist calls for the cancellation of subsidies to banks at the heart of the US banking system. Because Facebook's crypto currency will provide great benefits to users. Because the assets that support the crypto currency will generate interest income. If Facebook does not share its benefits with its users, it may remain in the midst of criticism.

Well, Facebook will save what you like with the crypto benefit. Facebook, the entire US dollar balance through the Federal Reserve'de interest through one of the bank partners to invest $ 10 million per month will be $ 235 million in earnings. If this is not shared with users, politically Facebook may find itself in the midst of criticism.

Currently, the Fed's actual interest rate on its member banks from surplus reserve interest (IOER) is 2.35%.

Instead of sharing such gains with other customers, other stabilcoin providers put almost all of them into their pockets. However, the number of Facebook's potential customers may cause a big upturn and the company will not be able to do so. Because Facebook's stablecoin will be so big and visible that it can't handle it. Therefore, he will not be able to sweep his gains under the carpet.

Facebook's foundation will grow to gain great power in global capital markets…

Facebook plans to reduce the management control of the crypto money project to an independent foundation it recently established in Switzerland. This makes sense because Facebook not only strengthens its project against antitrust claims, but also helps to reduce the degree of centralization of the crypto currency.

This will enable the crypto-currency project to gain considerable strength in the global capital markets relatively quickly because it will do what the central banks do, which will define the basket weights for the actual currencies in which the value of stabilcoin is fixed and manage assets for fixing the basket. There are many strong belirleyici basket determinants Sermaye in capital markets, and their ability to move markets can be important. For example, consider the committee defining the components of the Dow Jones Industrial Average Index (DJIA) or the S&P 500 Index, or the central banks, tying their money to the basket (such as China's PBOC).

Along these lines you must have understood the potential of Facebook's crypto money project. Facebook will not pay mining holders of the crypto currency because we will have a stablecoin. However, given the fact that the company does not pay interest to its users and there will be a large number of commercial volumes, there is a large interest income. It is therefore not surprising why dozens of banks want to support the project. They all want to get a share of that interest.

Facebook will shed light on the old financial regulations, but will face regulatory uncertainties in this process Facebook

Is Facebook's crypto currency a security? So will users face this with the nonsense of needing an account with commission fees to get a cup of coffee? What will Facebook do about financial regulations? With the financial regulations facing crypto currencies so far