Is Facebook's new crypto Libra the future?

Published date: 28/06/2019

According to reports, crypto exchange giant Binance has wasted no time in initiating discussions with Facebook regarding collaborating on the Libra project.

Facebook representatives were said to have spoken to Binance during the FinTech Junction event which was held on Thursday in Tel Aviv. Gin Chao, CSO of the exchange revealed that primitive dialogue with Facebook has begun. The discussions are geared towards the potential listing of Libra on Binance. 

Gin Chao highlighted the fact that Libra would be hosted on a private blockchain initially and as a result would not require external liquidity in its primitive stages. However, as time goes on, in order to expand its reach, Facebook would need to have access to a secondary market. Therefore, it would be in their best interest to be listed on prominent exchanges.

In another conversation, delegates from CryptoPotato also spoke to the Binance CSO at FinTech Junction where he suggested that there was potential for Binance to support the Libra blockchain by behaving as a permissioned node that validates transactions.

Facebook has mentioned that its longer-term aim is to have 100 nodes, naming partners such as Visa, eBay, Uber, and Lyft already committing to fulfil this role backed by a sum of around $10M per node.

Chao claims that Binance is yet to make a final decision however it is seriously weighing up its options.

He added that regardless of Libra being a success, the announcement of the Libra project was a major boost for the Crypto community. With a giant such as Facebook stating its interest and intentions to execute such a project, it has gone a long way to help validate Cryptocurrencies in the eyes of the public as well as mainstream and institutional investors. 


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