eToro has been very critical of social media mogul, Facebook’s upcoming projects and plans to launch a digital crypto-currency.
Facebook vs. eToro
According to eToro, with Facebook attempting to launch its first business of cryptocurrency, then it should forget about creating its own virtual coinage. Instead, they should just utilize stable-coins that are established by regulated and registered third parties, to make it easier.
With the current project of the social media mogul Libra, there has been various backlash and criticism from financial regulators in the US, UK, and Europe. They are mostly anxious about Facebook’s power, considering it had a less than perfect previous track record with user privacy and personal information.
However, eToro Labs, the research branch of eToro, states that Libra’s objective of establishing a service of peer-to-peer payment could be utilized by millions of unauthorized consumers all over the world is too much of a risk to ignore.
Instead of creating a digital currency, labelled as ZuckBucks, eToro regards the issuance of stable-coins are supported by fiat currencies that should be represented to registered third parties, which will make it more credible. This means that Facebook would no longer being responsible of controlling a currency, highlighting their focus on Calibra that could be accessed through WhatsApp and other Facebook platforms.
On the other hand, eToro has already established its own stable-coins, yet it has very little uptake in the nonexistence of a solitary benchmark that would allow merchants to accept them as currency.
What Does the Copy-Trading Broker Think of All This?
Yoni Assia, CEO and co-founder of eToro, states: “The Libra project is a trailblazing opportunity for radical innovation in financial services. Instead of pursuing a single synthetic asset class, the Libra Association should lobby for harmonized and simple regulatory frameworks for the governance of the third parties using the Libra chain for executing payments.”
“The regulatory burden and associated compliance costs would befall those who use the ledger for their own gains, be it in the issuance of collateralized stablecoins, commodities or other financial instruments, effectively removing Libra from the money trail altogether.”