With the smoke from the Libra unveiling now firmly wiped clear, Facebook’s tryst into the cryptocurrency world is now in full view for the world to see. While some are still choking on its fumes, deeming the once referred to as ‘GlobalCoin’ as a tech-focused centralized attempt at payments, others are calling it a breath of fresh air.
One prominent crypto-personality who is firmly in the latter camp is Anthony Pompliano, the co-founder and partner at Morgan Creek Digital, who revealed his thoughts on the Libra-Calibra project in a recent interview with CNBC Crypto Trader’s Ran Neuner.
Right off the bat, Pomp made his intentions very clear,
“I think Libra and Calibra, the digital wallet are a great thing for the crypto ecosystem.”
He added that Libra will act as a signaling device, bringing “exposure,” to the nuances of the cryptocurrency world. Many in the general public are crypto-virgins and the Facebook project will plant a digital assets seed and will thereby act as a means of educating the masses about this technology.
From a marketing perspective, Pomp suggested that the focus from Menlo Park will be retail, adding that the Libra will be sold as a “cryptocurrency that you can use to buy things.” The key would be to bring in the “value,” that the public can derive from a digital assets project and not get them lost in the “nomenclature.”
Bringing Bitcoin into the picture as an equivalent to Libra and thereby acting as a bridge to introduce the masses to the realm of decentralized currency will not be a straight forward path. The connection between ‘a form of crypto,’ which the Libra claims to be versus ‘the main crypto’ which Bitcoin truly is cannot be directly linked.
Pompliano compared this to the question of the US dollar and the concept of fiat currencies, even though the USD is the most powerful fiat in the world, not many would know the definition of the term ‘fiat,’ and hence will not be able to draw the correlation.
“I don’t think it is valuable for people to have to say that this is a cryptocurrency in order to use it. It would be like saying you can’t use a US dollar unless you know its a fiat currency.”
Given the infrastructure surrounding the Facebook Libra project, the general public’s lack of awareness is kept in check. Not only is the cryptocurrency claimed to be backed by a basket of fiat currencies, but tried-and-tested payment partners in Visa, MasterCard, and PayPal have been incorporated into the $10 million buy-in “consortium.”
Facebook’s plan of channeling the project via their messaging applications, WhatsApp and Messanger, as well as priming the same on their own blockchain complete with a custom digital assets wallet in Calibra, shows how far the social media giant is willing to make the entire process ‘in-house,’ and ease the public into the digital assets fold.