Bitcoin, Ripple, Litecoin: Will Facebook pose a threat to crypto giants?

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The world’s leading Social Media platform, Facebook plans to get into payments in a big way. Facebook is planning to debut its virtual currency, the Libra Coin.

Rumors have been doing rounds concerning Facebook and its plans to launch its virtual currency for months, but now Facebook finally seems to be ready to put the debates and assumptions that have been making its way to mainstream media by revealing what they have been planning.

The founder and CEO of Facebook, Mark Zuckerberg, is expected to release an official white paper that will outline the technicalities and details their plans later today. A full debut will come next year where Facebook will unveil the much awaited and talked about Libra cryptocurrency and blockchain technology.

Entering the cryptocurrency world is a big move for Facebook, considering the social media company is fresh from serious two-year scrutiny over the allegations of poor privacy practices and foreign interference. It is expected the new virtual currency, and the blockchain platform will not only be able to send and receive funds through Facebook, and its subsidiaries, Messenger, Instagram, and WhatsApp but will also allow users to make electronic purchases with retail websites at low costs in comparison to the tariff’s standard banks and credit card institutions offer.

Although Facebook has consistently declined to shed light on its move to enter the crypto market, various media interviews with its partners indicate to us what to expect. At present, this is what we know about Facebook’s entrant into the cryptocurrency sphere.

Facebook’s crypto coin could be called Libra

In anticipation of its launch, the market has speculated the name of the crypto-coin with various sources calling it either Libra or GlobalCoin. After careful observation on Facebook’s operations, we have reason to believe that the name Libra could be the most likely public brand for the virtual currency. Earlier this year, Facebook acquired the trademark Libra setting up a new financial technology company branded as Libra Networks.

According to the information we have gathered from public postings reported by Reuters, Facebook intends the Geneva-based company, Libra Network, will focus on blockchain, payments, financing, investing, big data, identity management, analytics, and other technological services.

Whatever name Facebook settles to call its new technology, it is sure to cause a significant disruption in the cryptocurrency and traditional financial industry as the social media networks plan to take the payments and commerce industry by storm. The new technology by Facebook could be used to settle payments between friends and family members at little or no costs through its wholly-owned applications Messenger and WhatsApp.

At the moment of writing, Facebook has already conducted payment experiments using WhatsApp in India. Facebook’s innovation could spell good fortunes to merchants and shoppers as they will be able to receive payments and buy products online safely. Moreover, Facebook is set to maintain and improve its business of target advertising by understanding what people buy.

According to reports from reliable sources, it is believed that Facebook will initially set their attention on the remittance market in India where more than 200 million citizens use WhatsApp. India’s has one of the highest numbers of remittances sent home by its people with the World Bank disclosing that 80 million US dollars were transferred to the country last year.

Libra vs. Bitcoin, Ethereum, Ripple, and Litecoin

Despite what many might tend to think, many virtual currency industry players are fired up about Facebook’s Libra cryptocurrency project.

According to Bitcoin bulls, the entrant of Facebook into the cryptocurrency market will act as a stamp of approval that would legitimize the crypto space making it go mainstream, but its entrant spells doom for traditional financial institutions.

Facebook’s efforts in joining the cryptocurrency market have the potential of being one of the most awaited catalysts for Bitcoin, Ethereum, Ripple, Litecoin, and the entire cryptocurrency market in terms of adoption. Levels of cryptocurrency adoption are expected to hit highs that the technology has never witnessed.

Despite coming in as a competitor, Facebook, which has a monthly active user base of about 2.5 million users, will increase user traffic and investment towards the cryptocurrency market.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

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Naveed Iqbal: A crypto nerd, internet security wizard. Believer of 'decentralization' in real. Love helping others and spreading information worth sharing.