With the stellar entrance to the market that Facebook did a few weeks ago, the main question is what are going to do other FAANG companies in the future. During an interview with CNBC, the Winklevoss twins said that these companies (Facebook, Amazon, Apple, Netflix and Google) would be embracing digital assets in some way.
Would FAANG Companies Enter The Crypto Market?
Facebook has launched the digital asset Libra three weeks ago, being the first FAANG company entering the cryptocurrency market. Although there are some debates whether it is possible to consider Libra a virtual currency or not, it is clear that Facebook is moving towards the digital currency world.
Tyler and Cameron Winklevoss are known for being part of Facebook when it was being developed. However, due to some issues with Mark Zuckerberg, they couldn’t keep working on it. Some years later, the twins decided to co-found the crypto trading platform Gemini. Now, this cryptocurrency exchange is one of the most popular in the market and in the United States after acquiring the BitLicense from the New York regulatory agency.
Regarding these companies, they commented:
“Our prediction is every FAANG company will have some sort of cryptocurrency project within the next two years.”
Libra was created by the most popular social media network in order to offer its users the possibility to make transfers and process payments in a fast and easy way. Furthermore, the intention is for stores and shops to start accepting this digital asset.
Before other FAANG company decides to launch a digital asset, it might pass some more time. The main reason behind that is related to the fact that there are no clear regulations for these digital currencies to operate. For example, regulators around the world have already requested Facebook to clarify their intentions and how they are going to be dealing with regulations in different jurisdictions.
The main concerns of institutions and governments regarding Libra are related to the potential that it has to bypass the traditional financial and banking system. Although crypto proponents have been trying to do so during the last 10 years, virtual currencies are far from reaching mass adoption. Nevertheless, Facebook has a user base of billions of individuals around the world, including developing countries.
At the moment, none of the other FAANG companies hinted about launching a specific virtual currency for their platforms or services they offer.
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