Economist John Vaz believes that Bitcoin (BTC) is still facing strong opposition from Facebook's Libra project.
Vaz also said that Bitcoin is going through a testing phase with problems with payments and being used as a speculative hoarding vehicle. In contrast, Libra, which was built to be used as a payment network, could easily become a major competitor even though there are still some bottlenecks in circulation. Let's learn about this issue with primexbt exchange.
“Libra is not dead yet,” he said, “they are just navigating a traffic nightmare.”
Along with that, Vaz denied the importance of central bank digital currency (CDBC), seeing it as a “form of defense” in response to the threat of digital assets to control. money supply and credit.
“Bitcoin’s biggest competitor comes from other coins,” Vaz said.
The interesting point of Libra
While knowing that Facebook still has problems with community security, Vaz thinks the Libra stablecoin model is “interesting” – he emphasizes the basket of assets that underpin the stability of the coin, as well as the network on which the stablecoins are located. accessible to large tech companies.
The economist thinks that companies like Facebook can take advantage of the existing user base and pretend that the financial transaction is actually happening.”
“They are targeting an existing market where users are making exchanges through Facebook, Messenger, WhatsApp and Instagram. They are holding the flow of messages, which means financial circulation using fiat currency transactions.”
As such, Vaz thinks that Libra will release with a huge "domain potential", more than all other cryptocurrencies from the start.
He predicts that Libra's initial goal is to grow the country before developing the market, saying that "They will make their mark there - people are using the apps massively and there is a need to pay for them." .”
See more: The RSI shows Bitcoin will fall again
CBDC in counterbalance to crypto-assets
Vaz does not expect central bank digital currencies (CBDCs) to be a counterweight to cryptoassets and stablecoins and only a “form of defense.”
“This looks like a weak response from central banks just because they don’t like cryptocurrencies.”
Instead of worrying about the potential for central banks to threaten Bitcoin's potential, John believes that Bitcoin and other cryptocurrencies could undercut the banks' money supply. “The ability to boost the economy will be lost because for assets like Bitcoin, it is not possible to make money out of credit.”
“Banks can offer eight to nine times as much loan based on a partial reserve system. Since then, many banks have created a huge money supply based on this system. But with Bitcoin, you can't lend something you don't have."
Vaz once again asserts that CBDC offers no benefits above the peer-to-peer contract level – while for cryptocurrencies this is entirely possible. “Central bank digital currency is more about financial management than providing profit.”
.jpg)
.jpg)