Since Facebook revealed its Libra project’s whitepaper, it has faced major opposition from regulators and governments around the world. However, the latest reports indicate that the project is receiving unlikely support. According to the reports from the French newspaper, Les Echos, Xavier Niel, the founder of Telecoms group Iliad, said that he believes the coming of project Libra is ‘inevitable.’
Niel is convinced that Libra will join the market and exist like the other over 1,000 cryptos available in the current market. The French tycoon thinks that the launch of Libra will create direct, interpersonal and fast payment channels. He also believes that the token will get rid of middlemen; impact costs, and will eventually end the monopoly of banks.
This project has a net worth of $3.9 Billion and if implemented effectively, it will become highly reliable and provide guaranteed data protection. Niel took a dig at the critics stating that the fight against money laundering is still ours. Additionally, the concerns should be addressed without preventing the experiments that might solve the existing challenges.
“When Iliad teams studied the Libra project, they were impressed by all the opportunities it could create. Convinced of the potential and attractiveness, I am delighted that they decided to accompany it. We want to be at the heart of this revolution, with the strength of our convictions, our experience, and our will.”
The Economic Quagmire
Bruno Le Maire, France’s finance and economy minister, has said in previous months that Libra is a potent risk to the “monetary sovereignty” of governments. Additionally, the EU antitrust- chief Finansforbundet said in an interview with Denmark’s finance industry union that the European Union is ready to determine the real intentions behind the Libra project.
She has already launched investigations into Libra on the basis that it has a potential for anti-competitive behaviour. This suggests that Facebook’s stablecoin will put at a disadvantage all the parties that choose not to use it. Moreover, she is convinced that there exist many inherent financial stability concerns as stiff competition kicks in.
According to her, it is highly likely that central banks will be the ones most interested in the Libra project. Cœuré, Member of the Executive Board of the ECB, in a recent report said that while the stablecoins are designed to solve some of the described problems in the crypto world, Libra was designed to efficiently solve pertinent issues.
CoinFLEX Announces Libra Futures
Recent reports from Cryptocurrency derivatives exchange CoinFLEX suggest that it is now ready to launch physically-settled futures contracts for Libra. Moreover, the exchange wants to host an Initial Futures Opening (IFO) for the same development on the 24th of October.
This newly launched crypto derivatives exchange will enable users and traders to bet on the possibility of Libra going live by Dec 30, 2020. Libra traders would receive Libra tokens or get nothing by the assigned date subject to their long or short positions. If Libra fails to launch, traders will lose all their investment. The initial price for Libra Futures is set at 30 cents.