Sadly, we can’t get to attend other matters as industrial production data, high unemployment rate and the U.S. sanctions are taking their toll on Turkey. So today, I want to put your minds at ease, at least for brief moment.
As attempts at creating a cryptocurrency go full steam ahead in Turkey as well as in the world, we also witness many projects that perish before they are even born. Recently, Facebook’s cryptocurrency Libra has suffered great damage; I might even say that it’s on the verge of collapse and fading into history. As I’ve said in my previous reports,
“A cryptocurrency must primarily serve as a medium of exchange and investment”.
As a matter of fact, Libra had started off rater well, having entered business partnerships with Mastercard, Visa, Stripe, Mercado and eBay. Back then, I had sincerely appreciated Libra as a currency with a bright future ahead. Apparently, I was wrong.
Last week, all of Libra’s partners decided to withdraw their money as they were uncertain about the value of their investments. Even PayPal, as the first company that signed a Libra agreement with Facebook, decided to terminate its investment before everyone else did. But, why?
Well, for a very simple reason. Libra didn’t have a strong regulatory infrastructure. The world’s largest financial services corporations were expecting Facebook to take the necessary steps, but apparently, they had some sort of breach in their mutual relations. Everyone knows that the founder of Facebook has a different approach when it comes to business. He must have probably said, “I am not the one that needs you. But you, you need me” The corporations I cited above are the world’s dominant powers in global payment services. Maybe, they responded, “You wouldn’t exist right now if it weren’t for us!” Who knows?
The only thing I know is that cryptocurrencies do promise other good stuff too in addition to their pledge to provide more efficiency in banking and banking-related payment systems. We should also know that the creators of cryptocurrencies will not follow the 300-year old banking trends, considering their promise to turn energy into value. That’s why it would not be very realistic to expect Facebook Libra and traditional payment systems to come to a mutual understanding at an early stage.
However, I think Libra will be back, though not very soon, in a different form and shape. We shall see together if future events will prove me right.