Online brokerage eToro has suggested that Facebook should find ways to support third-party stablecoins instead of Libra.
Facebook’s CEO Mark Zuckerberg
On October 23, Mark Zuckerberg, Facebook’s CEO, returned to Capitol Hill to testify before Congress that the company planned to use the cryptocurrency it is backing – Libra. He tried to remove all concerns surrounding Facebook’s regulatory measures. Since his last journey back to Parliament House in April 2018, after breaching Cambridge Analytica data, this marks Zuckerberg’s first testimony to Congress.
On November 28, according to a report from Finextra, blockchain research unit eToroX Labs thought that while Facebook’s cryptocurrency project provided a “trailblazing opportunity” to disrupt financial services around the world; the social media giant needs to change its strategy in order to ensure success.
Facebook needs to forget about launching its own virtual currency if they stand any opportunity to bring their crypto business off the platform. And instead, they should use stablecoins regulated by third parties, according to an article by online brokerage firm eToro.
Facebook should focus on wallet infrastructure
Since its inception, Unreliable and strong opposition has made it difficult for Google’s Facebook project – prompting American politicians to have reserved attitudes towards Libra.
However, eToroX Labs researchers suggest that embedding a peer-to-peer payment network can improve global finance in realizing the company’s ambitious goals.
Facebook may authorize the release of assets to specified third-party partners to solve their problems.
According to eToro, independent fiat-backed stablecoins will eliminate the task of controlling currencies from Facebook. Instead, they can focus on building their Calibra wallet infrastructure and launching it to 2.7 billion users worldwide.
EToro is notable for being a company that issues a range of stablecoins, backed by the US dollar, pound and euro.
Yoni Assia – CEO and founder of the company, said that the Libra Association should lobby legislators to provide harmonious and reasonable legal frameworks. It includes “the governance of the third parties using the Libra chain to make payments”. Yoni Assia argues that:
“The legal burden and the cost of compliance involved will be with the ledger users for their own benefit. It could be in issuing stablecoins, commodities or other financial instruments, eliminating completely Libra out of the money line “.
Proliferating options
Blockchain R3 CEO has mocked the way Facebook introduces the soon-to-release Libra stablecoin.
According to financial news reported on November 18, David Rutter, CEO of enterprise software company R3, said that Libra’s announcement this summer was ridiculously stupid.
As Libra continues to divide its global perspective, the Libra Association is moving forward, reporting more than 30 projects and 51,000 transactions on the Libra network over the past two months.
Facebook launched a new fiat payment system called Facebook Pay as the Libra stablecoin project continues to face hostile audiences of regulators.
Facebook – social media giant announced that it is introducing the launch of Facebook Pay. That is a payment system designed to facilitate payments on Facebook, Messenger, Instagram and WhatsApp on November 12.
In October, Warren Davidson – Representative of the United States came up with the idea that it would be a better idea when Facebook added Bitcoin to their Calibra wallet than creating a new currency.
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