Online Brokerage Firm’s Suggestion on Facebook’s Crypto Decisions

Akhilesh Agnihotri
Akhilesh is an engineer and research subordinate working with thecoinrepublic.com as a part of the research team and do research work on Cryptocurrency and Blockchain. His curiosity in research and writing brings him to thecoinrepublic.com, He believes writing is all about expressing the thoughts with words and spread information backed by well-researched work.

Online Brokerage Firm’s Suggestion on Facebook’s Crypto Decisions

  • eToro is a multi-asset brokerage company that aims to provide financial and copy trading services.
  • Libra is a blockchain cryptocurrency to be built up by the online life stage Facebook.
  • The blockchain research arm of eToro, eToroX, recently opined that Libra’s object to create a peer-to-peer payment system which would benefit millions of customers.

Online brokerage eToro commented that Facebook should stick to stable coins issued and regulated by third parties if they are ever planning to involve in the cryptocurrency business rather than launching their platforms for the same.

eToro is a multi-asset brokerage company that aims to provide financial and copy trading services. The company has its branches in Cyprus, Israel, the United Kingdom, and Australia.

The company’s estimated value as of 2018 was $800 million. The company was preliminarily established in 2007 by Yoni Assia and Ronen Assia together with David Ring, as RetailFX in Tel Aviv. The platform enables its investors to monitor its top traders automatically on a day-to-day basis.

Politicians and regulators of the U.S, U.K, and Europe have been scrutinizing Libra, Facebook’s Crypto Platform, based on past instances of the companies activities for handling confidential personal information.

Libra is a blockchain cryptocurrency to be built up by the online life stage Facebook. Since only the rudimentary experimental code has been released, The currency and network itself do not yet exist.

The launch of this new initiative is proposed to be in the year 2020. The Libra Association, a membership organization of several companies specializing in various associated platforms will be managing and monitoring the project, currency, and transactions.

eToro’s point

The blockchain research arm of eToro, eToroX, recently opined that Libra’s object to create a peer-to-peer payment system which would benefit millions of customers must be given due consideration keeping in mind the merits of the system which can not be easily disregarded.

eToro suggested a mechanism whereby, the company should issue stablecoins regulated by third parties and supported by Fiat currencies so that it reduces the burden on Facebook to direct its attention entirely to the Calibra project, a payment platform that could be accessed by its users through Whatsapp and Facebook. This, in turn, will minimize the accountability rate of Facebook to issue its own currency.

The stablecoins launched by eToro has a little preference rate due to the absence of standards that would allow other merchants to accept them as currencies.

Libra introduced the idea of using a range of stablecoins pegged to sovereign currencies which include the US dollar, pound sterling, and the euro. However the same could not take place since regulatory authorities have obstructed Facebook from controlling such currencies.

As commented by the CEO and co-founder of eToro, Yonni Assia, Libra can be accounted for as a significant opportunity to increase the efficiency of financial transactions through the advancements it can provide.

However to achieve that, Libra should permit regulatory frameworks to monitor third parties using the platform rather than implementing its own intellectual asset class.

An endnote

The usage of the technology for its own gains would have a severe impact on platforms like Libra with respect to the costs, responsibility and regulatory burdens associated with it, be it in the field of issuance of commodities, stablecoins or other financial instruments.

Ultimately removing a significant player in the crypto-platform. It is also to underlines again that this step would eventually enable Facebook to concentrate on other developmental projects.

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