Crypto Industries Can Benefit From Facebook’s Libra: Binance

Crypto industries can have a huge benefit from Facebook’s Libra stablecoin according to Binance research. However, some believe that the major crypto exchange has its own interests in the stablecoin sphere so let’s see more about it in the upcoming Libra news.

In the research titled ‘’Will Libra Live Up To Its Initial Ambitions’’, Binance shares the positive vision or the long-term outlook of Libra. You can see however that the research if full with ‘’ifs.’’ Binance claims that if Libra was to become a widely used stabelcoin used with products quoted in LBR, we could see a new stablecoin that is both fiat-backed and crypto-backed that will replicate its peg on multiple permissionless networks such as Ethereum.

Binance Research also sees a huge possibility of multiple crypto exchanges adding support for the Libra coins but only once the networks get more mature and wider adoption happens. If this happens, Libra could become an alternative stablecoin to the already existing stablecoins and will result in increased competition among the existing market participants. This could also prove:

“massive[ly]” beneficial for the rest of the crypto industry, as the adoption would increase. If it happens that Libra opens access to third parties and keeps a user-friendly interface, benefits to financial inclusion could be significant, and ultimately reshape the global payment industry.’’

Libra Coins will compete with existing crypto projects on the non-trading use cases such as programmable currencies and other applications but its adoption will be prevented in some of the emerging sectors such as the Decentralized finance. Libra coins and stabelcoins are unlikely to be direct competitors according to the binance research because Libra didn’t compromise on the long-term goal to get included in the financial sector entirely. Instead, Libra made a short-term trade-off that will decrease the initial impact so the open access to the project has thus been postponed due to regulatory concerns.

More regulations for Libra will likely be imposed both externally and internally so the payment system will probably have to comply with the criteria that is created by the Bank for International Settlements. As per the Binance news, Libra changed the plan to launch a multi-currency Libra coin and now aims to start from single-currency stablecoins such as LibraUSD or LibraEUR. Libra moves to the permissionless system while Facebook suggests an alternative with placing libra on the same course as Binance’s Venus project.