Libra is a revolutionary project with a groundbreaking mission. Most projects face obstacles in their early stages, partners come and go and scope changes. So it is no surprise that a project as significant as Libra has met some initial obstacles.
Yet it is important to note that Libra has already had a positive impact. It has brought to the fore some big issues and accelerated conversations with regulators, governments and the world of traditional finance. We believe that in the long term Libra will help support mainstream adoption and increase global awareness of the potential (and challenges) presented by cryptoassets.
Libra has already increased awareness of crypto amongst a mainstream audience. eToro conducted a survey amongst US consumers in July this year, just a month after Facebook had announced Libra and it had already established substantial name recognition. 16% of respondents had heard of Libra, while Ethereum the second largest crypto achieved only 12% and has been live since 2015.
The very significance of Libra makes it a challenging concept. It offers the potential for Facebook to create one of the largest financial platforms in the world. It could mean greater financial inclusion and access to the digital economy.
While Libra raises important questions, this does not mean that the underlying idea of a global cryptocurrency is untenable. Cryptocurrencies are here to stay, whether they are called Bitcoin or Libra.
Cryptocurrencies will make global commerce far more efficient and could help to connect the unbanked. This is a very powerful construct and one that will take time to reach fruition.
We at eToro will continue to support such endeavours and continue to play a key role in this revolution as we work to open up money to everyone around the world.