A quick look at the crypto-space in recent weeks will reveal much fuss about Facebook’s new cryptocurrency. Rumours and speculation abound about what the project will look like, what the cryptocurrency will be named, and how it might shake up the cryptocurrency space, remittance companies, and other industries.
One thing which seems to be fairly firmly established is that Libra Coin will be a stable coin, backed by a basket of different currencies. Gamblerspro.com asked Facebook to comment on whether or not that basket might involve some existing cryptocurrencies. Facebook declined to rule it out.
A Facebook representative told us:
Thanks for reaching out. Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.
While this is nothing more than a standard generic response which doesn’t directly answer the question, it is curious that Facebook did not directly rule out the possibility of some cryptocurrencies backing Libra. If it is designed to be a stable coin, it is unlikely to include a significant portion of highly volatile cryptocurrencies like Bitcoin. However, with reports that Facebook held talks with Bitcoin bulls and former rivals Cameron and Tyler Winklevoss, we wouldn’t entirely rule it out.
The inclusion of even a small percentage of cryptocurrencies in the basket backing Libra would almost certainly unleash mass FOMO across crypto-land. Combined with the recent tweets from Bakkt hinting that it is ready for launch, this could lead to a dramatic increase in the price of crypto assets.
Have the Winklevi and Mark Zuckerberg buried the hatchet in a mutually beneficial move that will see Bitcoin and other cryptocurrencies dramatically increase in value, or is there some other reason for the twins to help their former archnemesis launch a product which will rival the Gemini Dollar? Only time will tell, but with June 18th (the date Facebook is set to release the Libra Whitepaper) just around the corner, it is fun to speculate on the possibilities and what they mean for cryptocurrency markets. For now, at least, Facebook hasn’t ruled it out.