Posted 3 years ago | by Ben Armstrong
Libra and Social Media Giant Twitter Might be Facing Off—Who Will Win?
There is no denying it—cryptos are hitting the mainstream in a big way. The latest edition of the saga involves social media giants Facebook and Twitter, and they don't see eye to eye on the next generation of digital money.
Facebook frontman Mark Zuckerberg was in front of the US legislature last week, pushing his ideas concerning Libra. The once (not too long ago) Facebook-backed token is increasingly under pressure from both regulators, and industry.
The other side of the token is where you will find Twitter guru (cofounder and chief officer) Jack Dorsey, who is a staunch supporter of both tokens and Bitcoin. The two social media moguls aren't on the same page, and both see a very different development environment for digital currency.
Libra is on Shaky Ground
The real problem for Libra is one of positioning. Crypto enthusiasts aren't a fan of the token, as it offers little in the way of innovation or digital freedom. There isn't a wide audience for projects like Libra within the crypto community, and without the support of HODLers, the probability of the next Bitcoin being launched is very small.
What Libra lacks in organic support it more than makes up for in fear from the establishment. Governments, central banks, and merchant banks are all terrified of Libra, and many development partners have already bailed on the project.
It is somewhat ironic that Visa and Mastercard will allow the use of their platforms to buy cryptos, but they won't participate in the development of Libra. While Facebook's token is just a (failing) idea at this stage, if this kind of animosity to it continues, it is as good as dead if and when it is launched.
Dorsey Digs Bitcoin, Not Libra
Twitter megaman Jack Dorsey has been a supporter of Bitcoin for years, but when he was asked about helping to develop Libra at a Twitter event last week, he said, "Hell no.” He went on to state that, “It (Libra) was born out of a company’s intention, and it’s not consistent with what I personally believe and what I want our company to stand for.”
Of course, that is true, and Facebook under Zuckerberg has a terrible reputation for protecting the data of its users. Zuckerberg himself has displayed a standoffish attitude with regulators in the past, so maybe Libra isn't the best idea since cutting off your hand with a plasma torch.
Dorsey puts his money where his mouth is, and recently supported the launch of Square Crypto earlier this year, which is an organization that will help quality token projects make it to the market.
Despite all of Zuckerberg's bravado, the Libra project probably won't be attracting many supporters from the crypto community, the banking industry, or anywhere he isn't throwing cash at developers who have a very questionable moral framework (and merchant banks aren't known for their ethics).