Does Facebook pose a threat to Ripple? User base could potentially drive opportunities

  • 22 June 2019, Saturday, 10:00

Since Facebook unveiled its contentious cryptocurrency project, Libra, much has been written and talked about. Circle Research, a B2B market research agency, noted that Libra’s most “obvious advantage” is that Facebook’s much-hyped crypto-project will be integrated onto some of the “world’s most prominent and entrenched consumer applications and payment service providers.” By leveraging the Zuckerberg-led firm’s massive distribution channels and a user base of over 2.3 billion monthly active users, the social media giant can seamlessly “bootstrap adoption.”

Dante Disparte, Head of Policy and Communications at Libra Association, said,

“Implied in this project is that wherever the Visa or Mastercard logo are accepted, Libra would follow suit.”

Below is a chart depicting the number of monthly active Facebook users worldwide, as of 1st quarter 2019 [in millions],

Another lead that Libra has, according to the research, is its exposure to not just a single fiat, but USD, JPY, EUR, and GBP as well. The research added,

“Libra Association has the flexibility to adjust the composition of reserves to include or replace assets should the need arise [i.e. “economic crises”].”

Despite Ripple CEO, Brad Garlinghouse, claiming that Libra could potentially “broaden the horizon” and will not undermine XRP, it seems to controvert Libra’s claims of providing its users with “low fees” in terms of payments and remittance, a zone which RippleNet is currently trying to revolutionize.

Circle Research stated that the Libra project could potentially educate a large number of people, outside the crypto-industry, about the technology and various aspects associated with it, including digital wallets, crypto-exchanges, public-key cryptography, pseudonymous, peer-to-peer payments and immutable ledgers.

The report also shed light on the fact that Libra could possibly drive improvement in terms of user experience, where Ethereum DApps seem to have lagged behind. It further noted,

“Libra may provide a way for the users of Facebook, Calibra, and other parties to explore and interact with open finance and other applications more easily”