Throughout the entire year, Facebook has been in the headlines for its controversial cryptocurrency platform it’s developing. The idea of an already suspicious corporate giant creating its own centralized cryptocurrency that could destabilize the world’s financial system didn’t really get a good reception.
Facebook received an incredible amount of scrutiny as a response to its new venture. As the world governments panicked that a corporation as big as Facebook has the potential to completely destabilize the current monetary system, various measures were taken. US Senators and governments alike threatened in-depth scrutiny in all the corporations involved, and numerous companies pulled their support for the cryptocurrency.
Facebook Pay Rolling Out
As the Libra project is slowly winding down from the absolute thrashing it received by central banks, governments, and regulators, it seems that Facebook has a backup plan. Facebook sent out a company blog post to herald the launch of the alternative payment platform: Facebook Pay. This platform serves Facebook, Instagram, Whatsapp, and Facebook Messenger in order to provide a more streamlined payment experience throughout the company’s platforms.
Lacking any sort of crypto to it, Facebook Pay is essentially Facebook’s version of PayPal, Alipay, or one of the many other payment apps that serve the various countries of the world. The users have to enable the app, add a payment method, and then use it to send whatever amount of USD they wish.
A Possible End to Libra
Facebook took a good amount of steps to remind everyone that Facebook Pay was in no way the Libra cryptocurrency. The company said that Facebook Pay was something that had the existing financial infrastructure to build off of. Facebook stressed that this would be separate from its Calibra wallet that would run on the company’s Libra network.
Jake Chervinsky, the General Consul of Compound Finance, stated what everyone had thought when Facebook made the announcement. He said that Facebook Pay sounded like an admission from Facebook that the Libra project wouldn’t get off the ground.
The China Threat
Mark Zuckerberg, the co-founder and CEO of Facebook made it clear that people shouldn’t consider Libra a threat. Zuckerberg believes that China’s crypto yuan would do far more damage to the global financial system as well as the so-called Dollar Domination than Libra ever could.
MarketWatch believes that US regulators are facing a significant challenge in China’s imminent launch of their own state-backed cryptocurrency. The crypto yuan would severely undermine the USD dominance across the world. Both President Trump and the FED don’t seem to grasp the situation, printing out money and aiming to devalue the USD even more.
China has recently put out a cryptography law, heralded blockchain technology as the future, and even stopped persecuting bitcoin mining operations. With the cryptography law coming into effect at the start of next year, the Chinese government could launch its digital yuan at the end of March with incredible ease.