The digital economy has been growing in recent years and an example of this has been the rise that cryptocurrencies have experienced and the increase in their popularity.
Recently, Facebook announced the creation of Libra, a cryptoactive that will reach both the digital and the real worlds in the form of a stablecoin, that is, it will have a group of underlying assets that will support it to avoid volatility in its value.
In this context, the president of the Intelinvest Brokerage House, the economist Ibrahim Velutini, explained that this is a project that has been under development for more than a year and is characterized as a “disruptive” proposal, among other reasons for having been devised by a private company that serves 2.4 billion users worldwide.
The expert stressed that Libra is not minable, but the transactions made with this cryptocurrency will be supported by the blockchain protocol. On the other hand, he stressed that the verification of the blockchain will be carried out by a group of private companies, which would continue to guarantee security in transactional operations.
Velutini said there are currently 27 allied companies in the Facebook project, but the number of companies is expected to grow and stand at about 100. Some of the most important and recognized participants are Visa and Mastercard, two giants in the global economy that in his opinion “they are understanding that this is going to be the way things will be done in the future”.
An innovation with high impact
“It had not been twelve hours since Libra was announced, when several countries said that it was impossible, that they could not allow the approval of such a currency and even less one controlled by a private company,” said the president of Intelinvest.
Some of the questions derived from this proposal are: Who controls Facebook then? Who will control the size of the coin issue? Who is going to control or supervise the fact that Facebook can have access to 2.4 billion users and the transactions that each one will probably perform? How is that data going to be used?
For Ibrahim Velutini, regardless of whether all the central banks can agree against Libra, its proposal and appearance is a warning about the future of the economy, the one that comes, because of the implications of formalizing a currency of this dimension, which includes wide scope and low transaction costs.
Despite the suspicions or precautions around Libra, “change is inevitable” in terms of global economic schemes, at least it seems so, and both the US government and Facebook will obviously do their best to achieve “control” over this cryptocurrency.
We invite you to see and learn more details in the video interview conducted on the subject.