Binance Research, the research arm of major cryptocurrency exchange Binance, claims that Facebook’s Libra stablecoin could spark additional cryptocurrency volume in a post published on its blog on June 18.
In the announcement concerning the release of the full report, Binance Research claims:
“Libra could spark additional cryptocurrency volume due to increased accessibility from both institutional players and everyday retail users.”
Furthermore, the post also notes that the researchers anticipate that the Libra will have a significant impact on both local and global markets, financial and economic industries, as well as in the cryptocurrency space. This influence will manifest after the 12 to 18 months that Facebook will take to integrate the asset into its services.
Binance Research also expects Libra to reshape the payments industry, be the basis of new financial services, advance greater financial freedom and lower capital restrictions worldwide, and defeat the hegemony of the dollar. The authors of the report also claim that, decentralized or not, Libra is still the first project of its kind:
“Backed by a basket of fiat currency-denominated assets in its initial release, Libra represents a first attempt at creating a world currency, on-chain or not, with everyday usage by billions of individuals and institutions across the globe.”
Lastly, the report notes that regulators and financial institutions could hinder the success of the project. Other decisive factors cited by the researchers are the ability to scale the Libra user base, public trust in the project, the system’s independence on Facebook and ability to provide reliable fiat on- and off-ramp solution.
Facebook has released the white paper for its long-awaited cryptocurrency and blockchain-based financial infrastructure project today.
Last week, the news broke that South American online marketplace Mercado Libre is working with Facebook on the social network’s Libra cryptocurrency project.