The world of digital currency or cryptocurrency is increasingly crowded with the arrival of Facebook Libra. Supported by companies such as Visa, Mastercard, Paypal, to Uber, Libra will function as a digital payment. That’s what distinguishes it from Bitcoin.
Experts agree that the presence of Libra is a strong sign that the era of cryptocurrency is inevitable. However, there are indeed differences between Libra and other digital currencies such as Bitcoin.
‘The main difference, what Libra is doing is creating a digital version of the dollar, yen or euro. It is like a stable coin but you still have all the characteristics of the currency,’ said Brian Kelly, CEO of investment company BKCM.
“While Bitcoin is digital gold. And in my opinion, probably much better than gold, but there is no third party to be trusted and that is a big difference,” said Kelly to CNBC.
He explained users can exchange currencies with Libra, so Facebook and its partners become the parties that must be trusted to make the transaction path. “You have to trust Facebook. You buy goods and services on the Facebook platform,” he added.
Trust in certain parties is what distinguishes between Libra and Bitcoin or the like. The reason is, Bitcoin buyers do not need to entrust money or information to other parties.
Although people might not trust privacy, Facebook can revolutionize the world of cryptocurrency with Libra. Consumers can broadly enter the world of digital currencies in more serious ways.
“This is a big step. Facebook will have an attractive digital wallet that everyone can use. It’s also easy to use. This validates the technology and gets people involved,” Kelly concluded.