cfo-au logo
Story image

Opinion: Facebook's Libra proves cryptocurrencies are now mainstream

17 Jul 2019

Cryptocurrencies are now ‘mainstream’. The United States’ hearings into Facebook’s plans to launch a new cryptocurrency called Libra prove that very fact, according to the CEO and founder of financial advisory organisation, deVere Group.

Nigel Green says that the high-profile scrutiny of Facebook’s new cryptocurrency is a milestone because it shows that cryptocurrencies are already part of the global financial system.

“They are here to stay. And their influence is set to grow exponentially.  As such, they should face the same scrutiny and meet the same standards and requirements as the rest of the financial system,” he says.

“This is a step in the right direction for establishing a robust global regulatory framework for the wider crypto market.”

But cryptocurrencies need regulation. That regulation must provide protection for the growing number of people who use cryptocurrencies, and it must discourage cybercriminals from using these types of payment methods.

Green says that the more protection there is, the less potential risk there will be for disruption of global financial stability. There will also be more opportunities for higher economic growth for countries that introduce cryptocurrency regulation.

“Whatever you think about Facebook's Libra as an individual cryptocurrency, these top-level U.S. governmental hearings underscore again that, as a concept, digital, global, borderless currencies are now a part of mainstream finance, and increasingly so.”

“This is why most major financial institutions, tech giants, and of course institutional and retail investors are increasingly involving themselves in the burgeoning sector.”

Green notes that President Trump mentioned Bitcoin in a move to make cryptocurrencies a political issue.

"I agree with Mr Trump that Facebook’s new Libra project should be scrutinised,” says Green. "This all adds to greater awareness and acknowledgement of digital currencies that will further boost mass adoption and push up prices across the sector."

“But, being the social media monolith that it is, it is surely expecting this level of scrutiny.  I would suggest that it is prepared for it, has the resources for it, and will welcome it, as it will make its cryptocurrency stronger.”

He adds that, “Facebook’s Libra will likely get through these hearings on Capitol Hill in a stronger position. The scrutiny, which could advance the cause of regulation, will be welcomed by crypto investors as it provides more confidence.”

“But whatever happens with the social media giant’s crypto project, it is clear from the top-level hearings that the U.S. government now understands that, whether they like it or not, people and institutions across the world are increasingly using a combination of sovereign and non-sovereign digital currencies.”

Story image
AWS launches fully-managed fraud detection service
Businesses lose billions of dollars to online fraud every year, however businesses respond by investing in cumbersome fraud management solutions that often rely on hand-coded rules and are difficult to keep up to date.More
Story image
New solution allows Windows apps on Chromebook Enterprise
Parallels and Google have partnered to enable Windows applications to run in VMs on Chromebooks without rebooting or an internet connection.More
Link image
Revealed: 5 ways to save time on payroll
There are many tedious and inefficient tasks associated with payroll processes, and getting them wrong can be a disaster. Here are some tips to streamline one of the organisation's most important activities.More
Link image
The truth about customer experience: Hard-hitting FAQs from leading CFOs
The entire C-Suite leadership team is looking to validate an experience management program by understanding: what is the financial impact of my CX investment?More
Story image
Empired appointed to Microsoft Business Applications Inner Circle
The Microsoft Business Applications Inner Circle recognises the top 1% of business applications partners - who provide Dynamics 365 and Power Platform - worldwide.More
Download image
Why there's a huge push for NFV in today's enterprises
To help networking and IT professionals better understand the opportunities and challenges associated with deploying NFV technology, new research based on responses from more than 1,300 IT and networking professionals from around the world is now available. More