Libra Is A Better Paypal, Not A Liberating Currency Like Bitcoin, ETH, XRP, And LTC – Forbes

Silhouettes are seen beneath a sign of Libra, the cryptocurrency project launched by Facebook during a conference at marketing and communication school CREA in Geneva on September 26, 2019. (Photo by Fabrice COFFRINI / AFP) (Photo credit

Facebooks global currency, Libra, is another payment system ie, a better version of Paypal, but not a liberating currency like Bitcoin andother major cryptocurrencies.

Thats according toAlex Karasulu, CEO and founder of OptDyn.

Libra, the blockchain, is a permissioned blockchain, which means that only authorized validators are allowed on the network, he says. Each of the 100 corporate members in the Libra Foundation act as transaction validators. It's a cartel from the beginning and that may present issues with both organizations outside of the Foundation and also won't fly well with diehard Bitcoiners and crypto-anarchist types.

Fortrue believersinthe Bitcoin and the cryptocurrency community, Libra isnt a currency that liberates transactions from the control of central bankers, the way Bitcoin and other major cryptocurrencies do.

Furthermore, Libra, the currency, is not a safe haven for investors concerned with the fluctuation in the value of sovereign fiat currencies because it's backed by a basket of sovereign fiat currencies, notesKarasulu. This means that Libras value can be influenced by central bankers.

Simply put, Libra lacks the ethos of blockchain, according toKarasulu.

It's empty and soulless to most cryptocurrency enthusiasts but theyre sure to see traction because billions of users exist on Facebook and the platforms of the 100 members that will use it to transact.

Meanwhile, Libra poses a threat to major cryptocurrencies, because most of these users wont notice the difference between a real liberating cryptocurrency versus Libra and will enter the cryptoverse for the first time through it, he says.

Wayne Chen, CEO of Interlapse Technologies,sees Libra having an effect on major cryptocurrencies, too. Regardless of the technical and derivative differences, the stability of Libra will have compounding effects to major cryptocurrencies simply from an industry wide association, he says.

While the Libra cartel has issues with the cryptocurrencycommunity, ithas more issues with big banks and regulators. Likenational security, investor protection, and liquidity concerns.

Then theres Libras threatto break their monopolyon printingmoney, andtomanipulate the economy to accommodate the interests of powerful elites.

Thats why Libra is currently being put through the ringer for regulatory, compliance and scrutiny, according toChen. With over 2 billion global users on Facebook, issuance of a new digital, global currency by a centralized corporation can seem overpowering.

While the future of Libra is unclear, one thing is clear: Facebooks currency will continue to draw intense criticism from both the cryptocurrency community, big governments, and banks.

Disclosure: I own shares of Paypal

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Libra Is A Better Paypal, Not A Liberating Currency Like Bitcoin, ETH, XRP, And LTC - Forbes