Cryptocurrency traders and investors, regardless of their field of operations – exchanges or platforms like Bitcoin Loophole, are paying close attention to Facebook’s plan to launch its own cryptocurrency. Libra has been in the news, non-stop, for weeks.
First, it was the announcement, stirring both enthusiasm and worries among the global community. Then it was the US Government, grilling the upper-management of Libra for its previous mistakes and what Facebook intends to do not to repeat them. All of this was followed by fake accounts and profiles on the platform itself, claiming affiliation with Facebook’s Libra, further undermining the future of the initiative.
Today, Huawei’s CEO Ren Zhengfei threw another stone in the new cryptocurrency’s backyard, saying “Why wait for others to issue it?”. He implied that China can very well issue its own cryptocurrency with the same characteristics as Facebook’s Libra.
Huawei has been in the middle of the trade war between China and the US for a long time now, it’s no wonder they would take a swing at Facebook and its projects. The fact of the matter is that Facebook is discreetly trying to leverage that to their advantage.
During the hearing in front of the US Congress, Libra’s representatives were quite clear that if it’s not the US, someone else would step in, in an effort to dominate digital payment services globally.
Why Not Have It Both?
As investors, we wouldn’t really mind getting more than one solution. Competition has always been a motivation and fuel for innovation and improvements. If it was up to us, we would have it both ways.
But the trade war between China and the US will hardly allow that to happen easily and without noise. And even though Facebook’s been blocked in mainland China since 2009, their efforts to get back there have not ceased for a moment.
With Facebook Libra on the horizon, the motivation to return, and the motivation on part of China to prevent them is only bound to rise. Given the uproar since the announcement of the new cryptocurrency, there are interesting times to come in the near future.