- Messari co-founder Ryan Selkis thinks that the project will remain stagnant for years.
- Selkis sees a greater likelihood of the Libra team developing stablecoins specific to each market.
Facebook’s flagship project Libra had a controversial 2019. According to the co-founder of Messari, a platform for the collection and analysis of data on cryptocurrencies, Ryan Selkis thinks that the project will be delayed for years.
When will Libra start?
Selkis made a study of stablecoin projects that have the greatest potential for 2020. In Messari’s report it is possible to find historically important projects such as Tether and others that are just in their beta stage, but are already taking the attention of cryptospace as reserve.
Selkis gives average importance to the Libra project on Facebook. Firstly, he acknowledges the potential that Libra has, but states that Facebook and the Calibra team were unable to weigh the impact it would have on the global economy and on public opinion.
The project was launched on the premise of banking the unbanked. A premise that has been part of the failure of Libra and the incalculable risks that have made organizations like the European Union opposed to its launch from the beginning.
Messari’s co-founder stated that government intimidation movements, especially from the US Congress, have been responsible for the project losing its most important partners (Visa, Mastercard, PayPal, Stripe).
Selkis makes two predictions about the future of the project. First he says:
The Libra team’s opening salvo to run a basket-weighted international reserve is definitively not going to happen in the next several years.
The above does not imply that the project will be terminated. Selkis predicts that the only way for Libra to stand on its own feet is if it moves from a basket of international reserves to the development of local stablecoins, suited to a region’s specific market.
Then Selkis’ conclusions coincide with Blockchain Capital’s report. The investment firm not only makes a prediction about Bitcoin’s price for this year, but also states that Libra will be approved to compete with the progress of the digital Yuan. Messari’s report only differs in that it is necessary for Libra to become a project for the development of many stablecoins:
I’d trust the Libra team to manage the economic complexity of a new global reserve currency, but not the political complexity of getting it from 0 to 1.
2020 the year of the digital Yuan
Facebook’s Libra strongest competitor, the digital Yuan, is fine-tuning details for its test phase. This will be carried out in specific regions of China, with partner institutions that will have incentives to develop the best method for using the CBDC.
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Strangely enough, the success or failure of China’s digital coin could determine the future of the Libra project. If the threat of the Yuan becomes too great, perhaps Facebook’s Libra will be the only way to prevent its expansion.