Facebook’s announced virtual currency has been getting a lot of press lately with some calling it a Bitcoin killer, and a success in waiting; while others do not think it will amount to much. Cardano founder Charles Hoskinson certainly belongs to the latter group.
According to Hoskinson, emerging markets are where cryptos really matter and according to him Facebook’s virtual currency will not find success there. Charles Hoskinson did not relent in his firm belief that emerging markets are the future;
“Emerging markets are where cryptocurrencies matter. When I look at the developed world, I don’t care. It’s highly regulated and, in many cases, a rigged system. If I decide to compete with a tech company, they can just push me out via regulation. Then I sit down with the prime minister of Georgia and he says, ‘we’re open for business.’ We can rebuild parts of their education infrastructure, create a new payments system or do a medical records system. The keys to the kingdom are right there. That’s 4 million people who in ten or twenty years will be very high-value users.”
Hoskinson believes that Facebook will struggle in making a pitch for Libra since it is yet to make enough relationships yet, which he believes is a necessity and needs to be built overtime based on tangible benefits that will go to the targeted markets.
“Facebook has to come into countries it doesn’t know a lot about and convince them to enslave themselves to an economic monopoly and give nothing in return. And their only pitch is that you’ll pay less on fees. I’m going there and saying, ‘we’re going to rebuild all your systems so you have fraud-free land registration, better voting systems and improved supply chains.’ We’re already doing this stuff but it took years. These are relationship-based markets – and Facebook doesn’t have those relationships.”
Facebook would disagree with Hoskinson’s assertions since the stated aim for their cryptocurrency is; “To help billions of people with access to things they don’t have now that could be things like healthcare, equitable financial services, or new ways to save or share information.”
Facebook’s Libra has secured deals with 28 partners already but obviously according to Hoskinson, that’s not enough to propel Facebook’s token to the heights it intends to reach. Facebook and Cardano are not the only crypto related companies that have designs in making an outreach to developing nations, with Coinbase adding 50 new jurisdictions in May.
Hoskinson adds to a list of crypto enthusiasts and commentators that are not sold on Facebook’s Libra, which has received a lot of criticism as not being true to the intent of cryptocurrencies to begin with; which is decentralization. Some have even claimed that BTC’s latest rally is as a result of a resistance to the Libra. Time will tell if Facebook’s Libra will become widely accepted and adopted.
Image Courtesy of finance.yahoo.com