Binance – the world’s largest and most popular cryptocurrency exchange by trading volume – has issued a new report praising Libra.
Libra Gets Touted by a Major Exchange
The exchange refers to Libra as a “gamechanger” in the payments industry and believes that it could potentially bring financial services to people who would otherwise always be cut out by banks and traditional finance institutions. The report explains:
It is important to note that there are very few payment systems, and most of them are operated by a central bank and of only regional scope. Libra could thus do for payment systems what SpaceX did to the space industry… shake the foundations of a well-established sector with high entry barriers. The mere advantage of issuing widely available programmable money would already initiate manifold efficiency gains.
The comparison of the project to SpaceX is designed to give readers insight as to what the payment company has been struggling with. SpaceX, when first introduced, also had several obstacles to endure and move past before it became the highly reputable company that most technical analysts see it as today.
Libra, according to Binance, is currently experiencing a similar introduction to the world of finance. Many people see it in a negative light or don’t believe it’s capable of revolutionizing the payment ecosystem. However, the crypto exchange is confident the project will soon be established as one of the largest and most influential payment tools in the world.
An anonymous Binance Research representative commented:
If Libra were to launch, it would be Transferwise on steroids that caters to a large retail and business audience and could thus start a new wave of innovation and fundamentally change the current payments landscape.
Libra has proven to be one of the most controversial projects to emerge from the cryptocurrency space. First introduced in June of last year, many people scoffed at the idea of sharing their financial information with Facebook, the company responsible for bringing Libra to fruition. At that time, the company was just getting over its marred reputation brought on by its ties to Cambridge Analytica.
Not Everyone’s a Believer
As a result, many congressional lawmakers battered Libra with questions and concerns regarding how executives planned to protect people’s privacy and how they sought to prevent financial crimes like money laundering. Given how unstable and unclear the regulatory environment has been, several partners or members of the Libra Association – such as PayPal – have called it quits and moved onto other things.
Libra has even been forced to downgrade its goals and ideals as of late. Originally, Libra was to be one currency unit supported by a package of fiat and stable currencies. However, the coronavirus has caused executives to put Libra in perspective and bring several currencies into the fray that otherwise wouldn’t have been part of the project.