Who could be the biggest Libra user in the future?

Who could be the biggest Libra user in the future?


Facebook’s Libra project has gone through more than enough government

and community criticism, but it still seems to be on its way to be launched sometime in the future. Sure there have been some rumors that several Libra Association members want to leave the project, but no matter how many will try to leave the project, new players will join it regardless of the overall outlook.

In the wake of so much criticism and uncertainty, multiple crypto enthusiasts tend to ask the question, “Who would actually risk using the Libra cryptocurrency?”. It’s an understandable concern considering how Facebook has been involved in data disclosure multiple times. Having one’s personal information from social media disclosed to the highest bidder may not be a life-changing issue, but having one’s financial details be in the same danger is much more serious. But, the Libra executives keep on assuring that customer data will be protected at all costs.

Who could use the Libra cryptocurrency?

After numerous surveys in different countries about Facebook’s Libra, we found out that the majority of users will not trust it as an individual provider. However, it’s likely that Libra adoption will happen through intermediary efforts, rather than direct influence over Facebook users. For example, several companies could have online shops present on Facebook, which is already a feature and only be able to sell these products via the Libra coin. This is the most likely outcome, but there are others as well. Let’s take a look at all the available options for Libra usage online.

Promotions and instant deposits

One of the primary roles of Facebook for a company is to spread awareness of their new product or a new feature that they’re offering. In most cases, this leads to consumers having to be redirected to their website if they want to make a purchase right then and there. However, with Libra coin, it could be possible to make such a payment without having to leave Facebook at all. And considering the fact that Facebook’s main goal is to keep the users online for as long as possible, this could be a very accurate prediction.

Several marketing managers have commented on this new addition saying that it may not impact the brand recognition as much as a redirect to the website, but it could increase sales, which is always the primary focus for companies. Samantha Cambridge, the manager of digital marketing of the Playamo AU blog has commented: “We as a company don’t really focus on the time that users spend on our platforms. All we focus on is the numbers, such as the amounts in deposits, withdrawals, in the amount played with and the amount lost. Therefore, having something like user-friendly payments directly from Facebook would be much more of a benefit to our platform rather than a detriment.

We’ve heard our users say numerous times that they always have difficulties to make deposits when they have to input their personal information over and over. Having a universal “digital wallet” from a platform they use on a daily basis is going to not only make the process easier for the users themselves but for us as a company as well. I understand why blogs would be against such a notion, simply because they rely on people staying on their website for as long as possible so that they can use that time spent as revenue from ads they place. I think it’s all about the product one offers.” But this is just one part of the global industries that can be affected. There are other comments as well.

E-commerce stores

The option to buy from a Facebook store has already been added to the website, however, it’s not as well performing as a redirect to the company’s website. Why? Because it’s the same process regardless of where the user makes the payment. It’s about choosing a credit/debit card and indicating the required details. However, according to several e-commerce store owners, having an effortless payment process directly from one’s Facebook account would impact company sales by a large margin. One of the most reasonable quotes to be found about this is the following:

“When doing e-commerce through Facebook, it’s absolutely essential that you’re either the first one to show up in somebody’s feed or you’re at least offering something different. Having something to stand out from the competition will determine the success of any e-commerce store owner, especially in a heavily populated area. Having the Libra coin attached to your payments could indeed be that differentiating factor between you and your competitors. If they don’t have that small extra feature that helps the user to save some time, it’s highly likely that you will be chosen as the supplier, just because you’re offering a user-friendly gateway.”

With e-commerce, it all boils down to convenience and the speed at which the users can make the payments. But this still doesn’t redeem the issues that are currently present with the Libra Coin. Some experts are essentially calling it a digital currency rather than a cryptocurrency, which in the current financial world is a big deal.

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Top 4 Reasons to not get Involved With Facebook’s Libra

Top 4 Reasons to not get Involved With Facebook’s Libra


A lot of people are keeping close tabs on Facebook’s new digital currency project.

Known as Libra, it will either change the world as people know it, or fail to make any meaningful impact. There are several reasons to not get too involved in this project right away, primarily because a lot of unanswered questions remain in place. 

The Trust Problem Can’t be Ignored

There is a very big difference between using Facebook for social media purposes and trusting the company’s digital currency project. Libra, while maybe appealing to some people, has a lot of things to prove. The main question is whether or not this will cause even more trust issues between Facebook and its users. The company does not have a good reputation in terms of keeping private information private, after all. According to some people close to the matter, there will not be any trust issues. In fact, David Marcus claims how users will not have to trust the company in order to make full use of Libra. This sounds appealing on paper, but in the real world, it raises a lot of questions. It seems this business model will ensure Facebook acts as a custodian of user funds. However, if the company doesn’t need to be trusted, it will be interesting to see how much control the end users have when everything is said and done. 

Political Concerns and Vulnerabilities

Perhaps the biggest drawback of Libra in its current form is how the development of this project has not received regulatory approval. In fact, the US Congress would like to potentially investigate this entire ordeal before it is even released to the public. There is also some concern this venture will pose a threat to the financial system, similar to how Bitcoin is treated in the United States. For the time being, the demand to delay the Libra launch is nothing more than an official request. That doesn’t mean an investigation will be launched, although things should become a lot more clear in the coming weeks and months. Some oversight regarding this digital currency would certainly bring more legitimacy to Facebook’s new venture. Leaving this new form of money unregulated could create very dangerous precedents for the future. 

Thumbs Down From Experts

The public perception of Libra, as well as parent company Facebook, is not helping matters much.  While some will claim everything has been blown out of proportion, it is often better to tread with caution rather than going in head-first. This is especially true when it comes to financial ventures in this day and age. As Joseph Stiglitz pointed out in a rather interesting post, this entire project gets the “thumbs down”. Since Facebook’s business model seems unclear, there is more than enough reason to be concerned. It is very difficult to create a digital currency with a fixed value, especially when multiple fiat currencies are involved. Stiglitz welcomes government scrutiny where this project is concerned, for rather obvious reasons.

Too Many Unanswered Questions

It is rather apparent Facebook has issues with transparency in every way one can imagine. Even when it comes to explaining Libra to the masses, there is still a lot of valuable information which has yet to be unveiled. Especially when it comes to the reserve holdings, potential interest returns, and the uncertain incentive system, a lot of crucial aspects need to be addressed fairly soon. As far as the governance model is concerned, things are not as cut-and-dried either. It is unclear how the battle lines will be drawn among council members, as those with more skin in the game will undoubtedly attempt to get their decisions put through by whichever means necessary. This can spell trouble for this project from day one, unless proper countermeasures are put in place to prevent shenanigans from happening.

Article Produced By
JP Buntinx