Daily Archives: June 1, 2020

Stemming from the confined venue of speculation and economic theory, there is much to address regarding the probability of whether Bitcoin will ever reach $100,000.

To bring light upon the query in motion, well analyze long-standing economic theories versus economists doubts while taking under due consideration deeply-rooted market variables, projections, and global acceptance that are all bound to distill a change in the value of Bitcoin in one way or another.

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With these truths in mind, lets begin.

Cryptocurrency enthusiasts have long poised the likelihood of Bitcoin reaching $100,000.

Evidence of this can be noted from high-profile individuals such as Anthony Pompliano, Co-Founder and Partner of Morgan Creek Digital.

I still think Bitcoin will hit $100,000 by end of December 2021. Fixed supply. Increasing demand. Time will tell.

Charles Hoskinson, Ethereum Co-Founder, had tweeted in late 2019:

Then, of course, we have the more recent actionable insights rendered through The Great Monetary Inflation proclaimed by macro investor Paul Tudor Jones, who acquired Bitcoin as a hedge against inflation earlier this month.

Despite acquisitions and proclamations attesting to Bitcoins impending worth, one should also assess whether these claims are rather a publicity stunt to increase Bitcoin participation or rather a deep-rooted belief originating from a coupling between past experiences and a desperate desire of riches to prolong extravagant lifestyles.

Regardless, these speculations should be taken with a grain of salt and weighed accordingly.

While crypto enthusiasts rely upon speculation in the crypto news, investors and Bitcoin participants tend to primarily formulate their assumptions upon tangible evidence that is derived from projection models and macroeconomic theories.

Projection models such as the Bitcoin S2F Model and M2 capitalization theory project astronomical valuations for Bitcoin but as time has shown us one of these models has already been debunked.

Over the past few years, and more prominent now as a method used to combat the financial ramifications of the Coronavirus pandemic, quantitative easing has been performed by countries central banks.

Take for instance the U.S. Federal Reserve, which has been printing U.S. dollars at an exponential rate since 1970.

Perhaps the most noticeable effects of the exponential printing of U.S. dollars would be inflation, where the price of goods and services has been rising in unison to meet the money supply.

Generally, a healthy economy would be characterized through depreciation in prices due to entities finding more efficient and affordable alternatives for similar goods and services but that is not the case.

To highlight the core point of this theory, should the Federal Reserve continue to print U.S. dollars at an exponential scale then, as a result, the U.S. dollar price of Bitcoin will also continue to rise at an exponential rate until it has reached a value of $100,000 per Bitcoin.

Also known as the Bitcoin S2F model, the Bitcoin Stock-to-Flow Cross Asset Model ratio created by @100trillionUSD seeks to measure the effect of scarcity on BTC price through measuring current Bitcoin circulation and production rate.

As @100trillionUSD suggested in 2019 through Modeling Bitcoin Value with Scarcity, The predicted market value for bitcoin after May 2020 halving is $1trn, which translates in a bitcoin price of $55,000. That is quite spectacular. I guess time will tell and we will probably know one or two years after the halving, in 2020 or 2021. A great out of sample test of this hypothesis and model.

While it doesnt take a mathematician to deduce how significantly short this economic model failed, up to 8 additional flaws have been reported regarding the Bitcoin scarcity valuation model.

As a result, we can no more put stock in economic theory than we can through unwarranted speculations.

The most level-headed forerunners for predicting future Bitcoin prices may be contributed to economists who have yet to be proven incorrect regarding their cynical-based projections.

Such examples include the projection laid upon us by Kenneth Rogoff, an economist and Harvard University professor, who went on to express the following during a CNBC interview:

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I think bitcoin will be worth a tiny fraction of what it is now if were headed out 10 years from now I would see $100 as being a lot more likely than $100,000 ten years from now.

Basically, if you take away the possibility of money laundering and tax evasion, its actual uses as a transaction vehicle are very small,

It should be noted that Rogoff isnt the only economist who feels that Bitcoin wont amount too much value in the future.

Joe Davis, a lead economist for Vanguard, a high-profile investment firm, stated, Im enthusiastic about the blockchain technology that makes bitcoin possible As for bitcoin the currency? I see a decent probability that its price goes to zero,

The bitcoin its value is based off of scarcity and an artificial scarcity thats out there, Its really tough to imagine where the long-term return comes from other than speculation. Joe Davis

If speculations regarding Bitcoins future applications are truly the driving force behind the volatility then the valuation of BTC as a whole is crippled as a result of diminished cash flow.

While speculation and debunked theories are two sides of the same coin, black swan events are an entirely different entity that has been known to characterize an era of hardship and uncertainty.

Unforeseen black swan events, such as the recent Coronavirus Stock Market Crash, have gone to illustrate that no economy is impervious to flaws while also dismantling the long-standing ideology that Bitcoin is a safe haven asset.

Given the ramifications that can materialize from the wake of black swan events, no Bitcoin valuation can be complete without the possible occurrence of these devastating events.

To expand, modern times must be taken into account.

Such as, those of us reading this have already survived one black swan event but given how countries are starting to open their borders and governing states are once again re-opening their economies, the likelihood of another black swan event occurring as the byproduct of a second outbreak of Coronavirus only increases with each easing of confinement limitations folded back.

Therefore, it would be optimistic to the point of foolishness not to weigh these truths in your mind when speculating the possibility of BTC reaching $100,000.

One variable piece of the puzzle that can significantly influence Bitcoins likelihood of $100,000 per coin would be the mainstream adoption of Bitcoin.

Should a significant surge in Bitcoin participation become present, then the generalized economic theory of supply and demand can be implemented as an increase in participation will likely be contributed to an increase in demand.

Through an increase in demand comes an appreciation of value, which given how Bitcoin supply is limited, should further strengthen the ideology that an increase in Bitcoin demand will increase the price of Bitcoin.

Lets ditch the economic theories and speculations to conduct some simple arithmetic.

The maximum sum of Bitcoins that will exist is 21 million.

Should the value of Bitcoin reach $100,000 per coin then the total potential market capitalization of Bitcoin, once all mined, would be equivalent to $21 million x $100,000 = $2,100,000,000,000 or $2.1 trillion.

According to CNBC in late 2019, the value of the global equities market surpassed $85 trillion, or $85,000,000,000,000.

It should be noted that the global value of the equities for 2019 started under $70 trillion, meaning it saw an increase of no less than $15 trillion throughout the year 2019.

To put that into perspective, should Bitcoin reach a value of $100,000 per coin (even if all were mined) that would mean that the market capitalization of Bitcoin would be more than 40xs less than what the value of the global equities market was at the end of 2019.

($85,000,000,000,000 global equities value / $2,100,000,000,000 = 40.4761904762)

Putting stock in speculations asserted by cryptocurrency advocates will get you no further than faulty economic theories that can in no way, shape, or form take under due consideration all the innumerable variables that nest their way into the ever-changing Bitcoin valuation equation.

Through M2 capitalization theory and the renowned principles of supply and demand, we are rendered rather convincing insights into the possibility that Bitcoin could reach $100,000 which is further strengthened when you compare the capped off Bitcoin market capitalization of $2.1 trillion to that of the $85 trillion for global equities in 2019.

While, at first, it may have seemed like a highly unrealistic projection of Bitcoin reaching $100,000, but when you stop to put it in perspective with the total value of global equities then it may appear, to some, as only a matter of time.

Regardless, and to conclude, it is impossible to accurately predict the value of Bitcoin in 10, 20, or even 40 years from now but if history has taught us one thing it would be that anything is possible.

Excerpt from:
Bitcoins $100K Probability Speculation or Economic Theory Backed? - Finance Magnates

What is hodling?According to Bitcoin analyst Phillip Swift, 60% of all the Bitcoin (BTC) available has not moved in the last one year essentially, this 60% of the cryptocurrency has not been traded at all. This is known as hodling a term that means holding but is spelled as such due to a typing error.

60% of all bitcoin has not moved on the blockchain for at least 1 year. This is an indication of significant hodling. The last time this happened was in early 2016, at the start of the bull run, said Swift.Advertisement

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Interest from institutional investors like Goldman Sachs turned Bitcoin investors bullishOne of the reasons behind the massive hodling in Bitcoin could be the interest from institutional investors like Goldman Sachs and hedge funds.Advertisement

Apart from GS, well known hedge fund manager and founder of Tudor Investment Corp., Paul Tudor Jones came out in support of Bitcoin. Bitcoin reminds me of gold when I first got into the business in 1976, he said in a market outlook note.

The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin, he further added.Advertisement

Bitcoin stalls at key $10,000 resistance level, but has significant upside if it can break through

Billionaire investor Paul Tudor Jones says he's loading up on bitcoin (GBTC)

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Bitcoin hodl waves indicate 60% of the cryptocurrency is being hoarded analysts suggest a bull run could be - Business Insider India

Dont miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for todays episode is provided by Mercator Advisory Groups report Cryptocurrency: A New Growth Segment for Prepaid Debit Cards?

Everything to Know about the Emergence of Prepaid Cryptocurrency Debit Cards:

Cryptocurrency prepaid debit cards are the method of choice for spending cryptocurrency off the blockchain.

A major cryptocurrency prepaid debit card serving the U.S. market closed in 2018. Only a year later, in addition to BitPay, there are two new entrants. Should you be a part of the new Wild West of cryptocurrency prepaid debit cards?

Summary

Title

Everything to Know about the Emergence of Prepaid Cryptocurrency Debit Cards:

Description

A major cryptocurrency prepaid debit card serving the U.S. market closed in 2018. Only a year later, in addition to BitPay, there are two new entrants. Should you be a part of the new Wild West of cryptocurrency prepaid debit cards?

Excerpt from:
Everything to Know about the Emergence of Prepaid Cryptocurrency Debit Cards: - PaymentsJournal

In response to the global challenges in various financial markets, recent trends suggest that Africas youth is leaning towards cryptocurrency as an alternative. Despite the obvious attraction, a number of questions persist on how cryptocurrency will shape the future of finance.

A study conducted by Arcane Crypto a Norway-based crypto researcher in collaboration with Luno, a leading crypto exchange provider, maintains that Africa is ideal for rapid crypto adoption due to current high inflation rates, volatile currencies, and a dearth of banking infrastructure, as well as a young digital-driven population.

According to CoinMarketCaps Q1 2020 report on cryptocurrency adoption, Africa had the second-highest adoption of cryptocurrencies worldwide. The continent had a percentage youth growth of 91.47%, owing much to Nigerias 210.6% growth in young crypto users.

At 210.6%, Nigerian youth led the rest of the world in percentage growth of cryptocurrency adoption, far ahead of Australia (+158.07%), Spain (+120.71%), Canada (+112.45%), and Mexico (+97.33%) that make up the top five.

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These numbers might seem impressive considering that the global crypto market was not spared from the pandemic in Q1 2020 when its market cap fell by 57% to $150 billion in March 2020.

However, as shown by Arcanes research, African countries lag behind others in infrastructure that will support the use of cryptocurrency. There is no meaningful mining activity, and it still has the lowest number of merchants that accept cryptos as a means of payments.

Africa also has relatively low numbers for non-P2P trading but has a higher focus on P2P trading. This means the main drive for most African users is buying cryptos when they are cheap and selling to others for a profit.

While cryptos are neither legal nor illegal, Arcane believes the hesitance of most African governments to take a stance is linked to the low adoption levels. It would then seem that several Africans are still not sure what to make of this currency.

Cryptocurrencies are the talk of the Internet these days, but you dont see where to spend them when purchasing an item because theyre not yet legal. Our best option is to buy them, sell, and make money, says Kevin* a crypto trader in Nigeria.

According to Kevin, without this option, several Nigerian youth will not see the value of cryptos or take it seriously as a possible currency for the future.

Arcane reports that the rapid adoption of cryptocurrencies is being fueled by the volatility of traditional currencies, an unstable political and economic terrain, and a large population that is underserved by banking services.

However, the cryptocurrency market is also subject to volatility which constantly shoots the price up or crashes it within a short time. Between January and May, Bitcoin has gone as high $10,000 and as low as $3,900. A difference of $6,100.

While this might be linked to the pandemic, that has always been the case for most cryptocurrencies. From December 17, 2017, to that same date in 2018, Bitcoin fell in value from $19,870 to $3,391.

An analysis by Investopedia reveals that just like the regular stock market, market forces still affect the price of cryptocurrencies such as Bitcoin.

News reports speculating that Bitcoin is about to be regulated, experts speculating the directions the price will go in, or just plain bad news regarding the sector has greatly caused a lot of volatility.

When the values of normal currencies are about to drop, governments can intervene to limit the impact, but as an unregulated market, the fluctuations are uncontrollable and subject to the activities of big influencers of the market.

For Kevin, Bitcoins represent another means to make money, but no one is certain as to what the future holds for it.

I started trading Bitcoins in 2015, and then you would hear things like Bitcoin was just $2 in 2011, if you had bought it then, you will have $504 now. Today, at roughly $9,000, the same message is still being preached, he recounts.

Rather than let their money sit in the bank where it will accumulate charges, Kevin insists most youth would prefer to brave the uncertain waters of Bitcoin like they do in the forex market or with US stocks.

No one holds a patent for cryptocurrencies, so anyone can create them. While the market is uncertain for unregulated digital currencies like Bitcoin or Ethereum, recent trends are showing that world governments and the corporate world are not entirely averse to cryptocurrencies.

In a rumour that was later denied, with the country stating it remains open to experiments, Tunisia was said to have issued a central bank digital currency (CBDC), Senegal has piloted an eCFA, while Ghana and Rwanda are exploring the development of their own CBDCs.

Companies like Facebook, IBM, and JPMorgan Chase are developing their own internal cryptocurrencies.

While Arcane believes that this might influence the adoption of cryptos, the creation of digital currencies by governments or corporations might change how it is used and monitored.

Cryptos developed by juggernauts like JPMorgan Chase will only be used internally within the company and will be tightly controlled and closely monitored.

Kevin believes that once governments start creating their own cryptos, they will be eerily similar to fiat money since they will be regulated and protected against the fluctuations normally seen in the unregulated and decentralised crypto market.

* not real name.

Nigerian startups raised $55.4m in Q1 2020;over 99% of which came from foreign sources. Find out more when you download the full report.

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Africa's young population and the drive for cryptocurrency - Techpoint.ng

The CEO of the US-based crypto exchange Kraken says he believes Bitcoin is on the cusp of a new long-term rally to $100,000.

In new a conference call hosted by Pantera, Jesse Powell says the masses dont yet understand the importance of Bitcoins scarcity and independence from banks and middlemen. He expects that to change in the decade ahead, if and when the value of the dollar dwindles.

I dont think Bitcoin is even priced into Bitcoin. Most people have heard about Bitcoin but they dont own any Bitcoin. They dont know what the future of Bitcoin is. I think if everyone knew about Bitcoin and the potential of Bitcoin and how great it was, the price would be a trillion dollars a Bitcoin. We would all just be switched over to Bitcoin and not be using anything else

I think that theres a lot thats not priced in, even though its predictable, like what the future is. Ten years down the road, the US dollar is going to continue to be printed like crazy. Its going to be totally worthless. No one is going to want it. Everyone is going to want Bitcoin. But thats not priced in because of perceived risks or perceived uncertainty about the future, about regulation, about how does the government respond in different situations as Bitcoin continues to develop, or how useful does it actually become?

Kraken is already witnessing an explosion of institutional trading. According to Powell, BTC will likely hit $100,000 in about two years.

I believe that were in a completely unprecedented time in terms of the global political and economic systems. I believe that this is going to continue to drive a pretty massive shift into digital currency. I think the next couple of years well likely see 1 BTC exceed $100,000

Just anecdotally, in the last two months, weve seen a huge surge in new accounts, from institutions. I think, again, I mentioned it earlier, something thats preventing more institutions from getting in is just the uncertainty around the regulatory situation.

I think many are in a wait and see mode, many maybe trying to have their mandates changed to allow them to invest in these asset classes. But I do think its coming. I think that more LPs are going to demand that their GPs invest in crypto. I think its going to come from the bottom up. The returns are just so hard to ignore. It seems irresponsible not to have crypto be a piece of your portfolio.

Despite his optimism, Powell says that right now, cash remains king, which is a significant factor working against Bitcoin in the current macro economic climate.

In a time like this, with so much uncertainty, I think people are looking to what they know, which is cash. Ive got to pay my rent in cash. Ive got to buy my food and my toilet paper with cash.

Theyre not looking to hold a volatile asset, however a good investment it might be in the long term. People are thinking very short-term right now. I think thats one thing working against Bitcoin.

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Kraken CEO: Bitcoin (BTC) Would Be Worth $1,000,000,000,000 If the Masses Knew the Power of Cryptocurrency - The Daily Hodl

The cryptocurrency market volatility is on the rise as the market gets ready for Bitcoins futures expiration on CME. These contracts expire every two months and often lead to the sell-off on the spot market. According to the recent data, compiled by Cointelegraph and Arcane Research, BTC/USD tends to lose 2.3% of its value ahead of the expiration. The traders will be closely watching the spot prices to be ready to react to the situation.

Currently, the total capitalization of all digital assets in circulation is registered at $264 billion, while an average daily trading volume reached $110 billion. Bitcoins market share increased to 66%.

Read also:Cryptocurrency Market News: Cardano and Bitcoin set the pace for the end of May crypto rallies

Bitcoin (BTC) hit the intraday high above $9,600 and retreated to $9,450 by press time. At the time of writing, the first digital coin is moving within the strong bearish trend amid expanding volatility. Since the start of the day, BTC/USD has lost nearly 1.5%, though it is still 3% higher from this time on Thursday. The resistance area of $9,500-$9,600 remains unconquered so far. The support is created by $9,000.

Ethereum tested the intraday high of $224.80 during early Asian hours on Friday, but retreated to $220.30 by the time of writing. The second-largest digital asset has stayed unchanged since the start of the day, though it is still nearly 7% higher from this time on Thursday. Despite the retreat from the intraday high, the price is moving within a bullish trend amid low volatility.

XRP/USD has experienced a sharp decline below $0.2000 after a failed attempt to clear a strong resistance at $0.2030. At the time of writing, XRP/USD is changing hands at $0.1980, down 1% since the beginning of the day and mostly unchanged on a day-to-day basis.

Litecoin (LTC) and Bitcoin Cash (BCH) are also experiencing sharp sell-offs. Both coins has lost over 1% of their respective value in les than 5 minutes. LTC/USD is changing hands at $44.54, BCH/USD - $237.45

Excerpt from:
Cryptocurrency Market Update: Bitcoin bleeding as the market gets ready for CME futures expiration - FXStreet

Cardano, the cryptocurrency was trading at $0,082729 at 11:23 (08:23 GMT) on the stock exchange Investing.com Index Sunday, changes made up of 15.35% for the day. It was the sharp one-day rally in the cryptocurrency since may 30.

This growth has pushed the market capitalization of Cardano to $2,14732 B, 0.00% of the market capitalization of all cryptocurrencies. Earlier at the peak of capitalization Cardano was $23,91700 B.

In the past 24 hours the currency Cardano was trading in the range of $0,074890 to $0,084612.

In the last 7 days Cardano showed growth within gained-pct. The volume of Cardano in the last 24 hours was $676,45782 M or 0.00% of total cryptocurrency. She was trading between $0,0511 to $0,0846 during the last seven days.

Currently, the price of a Cardano is still below 93,87% from their peak values, amounting to us $1.35, which was achieved on 4 January 2018..

The cryptocurrency Bitcoin was worth $9.563,1 on the stock exchange Investing.com Index up 0.31 percent on the day.

The Ethereum was trading at $238,85 on the stock exchange Investing.com the Index showed an increase by 2.68%.

The market capitalization of Bitcoin previously was $175,92495 B or 0.00% of total market capitalization of all cryptocurrencies, while the capitalization of the Ethereum was $26,36678 B or 0.00% of the total cryptocurrency market.

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Cryptocurrency Cardano increased by 15% - The Times Hub

Earlier this week, Facebook announced that it would be renaming its Calibra wallet initiative to Novi. The announcement comes not so long after Libra unveiled Libra 2.0, a newer version of the global cryptocurrency project that is believed to have been designed to have greater regulatory appeal.

Though Calibra has always been separate from both Facebook and the Libra cryptocurrency project itself, the wallet was widely considered to be an important component of Libra, which was launched last June.

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The digital wallet firm that was slated to provide custody options for Libra token holders formerly known as Calibra is henceforth to be known as Novi.

Why did the rebrand happen? In a Facebook post on the name change, David Marcusthe head of the Libra projectstated in a Facebook post that the primary reason for the new name was that the old name was a little too close to the name of Libra.

Therefore, weve made an update to make sure there is clear differentiation and clarity, Marcus explained. Novi, like Calibra, will be just one of the wallets that will eventually be built on the Libra network.

Why Novi? Marcus explained that the new name for the wallet was not, in fact, named after a small town in the great state of Michigan; instead, the name comes from the combination of two Latin words, novus, which means new, and via, which means way, he wrote.

Marcus said that as such, Novi will offer a new way to send, receive, and secure Libra currencies.

A spokesperson from Novi told Finance Magnates that the rebranding is just that: a rebranding; that there wont be any changes in the functionality in how the-wallet-formerly-known-as-Calibra will operate.

As a member of the Libra Association, we [Novi] remain committed to the Libra mission and are eager to begin delivering on it, the spokesperson said, adding that we are thrilled that seven new members have joined the Association in 2020 already.

Among these seven are e-commerce giant Shopify, non-profit organization Heifer International, cryptocurrency brokerage Tagomi, and payment processor Checkout.com.

Although the change to Novi has been explained as an effort to differentiate between the Libra network and the Calibra wallet, the spokesperson also explained that originally, the similarity in the names between Libra and Calibra was intentional.

When we announced Libra and Calibra last June, we wanted to demonstrate that Calibra, the digital wallet, was closely linked to Libra, the global payment system, the spokesperson explained. Both brands were born out of the same vision, to give people more access to the global economy.

However, weve found that Calibra and Libra sounded too similar, and people were getting confused, so we set out to create a distinction between the two, the spokesperson said.

However, confusion between Libra and Calibra among potential users of the system may indeed be the primary reason for the name change; some analysts believe that the name change may be an attempt to distance the wallet from Facebook.

After all, much of the heat that Libra has garnered from regulators the world over has focused around Facebooks mishandling of its users data. Facebook chief executive and founder Mark Zuckerberg himself acknowledged this in a hearing before the United States Congress late last year.

This has been a challenging few years for Facebook, Zuckerberg said. We understand we have a lot to do to live up to peoples expectations on issues like privacy and security.

Haider Rafique, the chief marketing officer of San Francisco-based cryptocurrency exchange OKCoin, explained to Finance Magnates that distancing the Libra projectas well as Calibrafrom Facebook may be important to the future of both the network and the wallet.

Indeed, although the fact remains that [] Novi, previously Calibra, is the Facebook-built wallet with integrations for their entities: WhatsApp & Messenger, Rafique said that it might be better to separate Libra from Facebooks direct involvement for the sake of the projects future.

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Similarly, Reuben Yap, project steward for privacy-focused cryptocurrency Zcoin, told Finance Magnates that some have opined that it is possible that they want to make it clear that Libra isnt just a Facebook project, but instead only a member of the Libra Association.

I do actually believe that the official reason is to prevent confusion of Libra, the digital currency or association, with Calibra, which is merely Facebooks wallet, Yap continued, especially since we have gone through this very same problem ourselves with Zerocoin (the privacy protocol) and Zcoin (the currency and project).

Notably, Ripple has also made branding efforts to create a clear distinction between itself as a company and XRP, the currency, and network that is only used in some of its products.

Therefore, we see some clear benefits of the rebrand, Yap said, adding that also, oftentimes, optics and public perception go a long way even with regulators.

Therefore, [] By having Facebooks official Libra wallet name not linked directly to the Libra brand, it may give an impression that Libra isnt a Facebook initiative,' Yap added.

One of the worries that regulators have is that Facebook is creating its own digital currency that challenges the sovereignty of traditional currencies, Yap continued. By showing that Libra is instead a consortium with many other members and that Facebook is merely a member among other equal members would assuage fears that Facebook will wield too much power.

OKCoins Haider Rafique also explained that indeed, by distancing themselves from it they make it seem more community-focusedthis likely is another effort to decentralize the Libra stablecoin in the eyes of regulators.

And indeed, the Libra Association involves many community members, Rafique explained. The new name may allow Calibra to fit in more casually with these other members of the Libra Association, as well as any potential other wallets that may be built to hold Libra tokens.

Novis spokesperson did say to Finance Magnates that the name change was an attempt to lessen the association between Libra and Calibra (now Novi) so that potential users would be more aware of the possibilities to use other wallets for their future Libra tokens.

With our new name, itll also be easier to address the misperceptions that were the only wallet for the Libra blockchain, the spokesperson said, adding that we hope that Novi will be one of many wallets.

By creating some critical distance between Novi (formerly Calibra) and Libra (and then perhaps also between Novi and Facebook), its also possible that Libra and Novi could be setting the stage to try and separate their respective regulatory futures.

The wallet and stablecoin could face very different regulatory paths, OKCoins Haider Rafique said. Libra will likely face years of regulatory battles to try and gain US approval of its stablecoin/currency, but its wallet (now Novi) could take a more narrow path and not need the same kind of regulatory approval.

And indeed, it is possible that years could pass before Libra is live in the world: the most important thing about Libra is that it still doesnt exist, remarked David Gerard, author of Attack of the 50-Foot Blockchain, to Finance Magnates.

Theres nothing to talk about yet, he said. Lets see what they come up with that doesnt absolutely horrify the regulators.

So far, Libra has indeed attempted to come up with at least one other iteration of itself meant to be less jarring for regulators.

Earlier this year, Libra 2.0 was unveiled: a new version of the project that stripped away the single-token model of the original Libra, and plans to [enhance] the safety of the Libra payment system with a robust compliance framework and [build] strong protections into the design of the Libra Reserve.

While Libra 2.0 doesnt seem to have made a particularly strong impression on regulators one way or the other, Reuben Yap said that the new plan of action could change the regulatory course of the project: with its recent redesign, regulators are being re-engaged, he said.

And while the projects original launch date has been delayed, the project still has an ambitious plan for the future: the recent recruitment of pro-regulatory and compliance people to their ranks such as Stuart Levy as CEO and Robert Werner as general counsel also shows that they are serious in getting this off the ground.

I believe Libra is aiming to launch by the end of the year, while also continuing to recruit additional Libra Association members, Yap said.

However, David Gerard pointed out that in spite of the redesign and the Calibra rebrand, regulators are still drawing a hard line. Libra say they could launch before the end of 2020, but first they need to get buy-in from regulatorsat the very least the Swiss, US and EU regulators, he said.

The thing is, working with regulation was always 100% of the issue. The back-end technology being a blockchain, never mattered. The big issue was always going to be how to integrate this huge payment processor with existing real-world systems of regulation when youre a large enough player to have systemic effects.

Therefore, it seems that 2020 isnt in the cards for Libra or for Novi: I would be surprised if they do launch at the end of the year as planned, Zcoins Reuben Yap said. Perhaps sometime in 2021 is a possibility if they manage to assuage regulator concerns.

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Calibras Rebrand to Novi: An Effort to Create Distance from Facebook? - Finance Magnates