Facebook’s Libra Faces Threat From Potential Amazon Cryptocurrency

September 6, 2019 / by Crypto.IQ

Since the launch of Facebook’s cryptocurrency Libra, several other projects have launched as potential competitors to the crypto. However, in a report by financial analytics company Cindicator, analysts indicated that the biggest threat to Libra could come from Amazon’s secretive crypto.

Projects that have since launched include Venus and Metal Pay. Venus aims at developing localized digital assets and stablecoins based on fiat currencies across the world. All these projects are possible ‘Libra-killers.’

Bu analysts have warned that Facebook should be wary of the threat that tech giant Amazon presents. Over a fifth of the analysts surveyed believed that the Seattle-based behemoth could potentially unveil a rival cryptocurrency to Libra. Around 22.62% of the analysts indicated that Amazon could soon announce its cryptocurrency.

Amazon is the largest online retailer in the world and could launch its cryptocurrency for making e-commerce payments. This would be a game-changer and could take a significant market share from Facebook’s Libra. 

Amazon has previously denied reports that it was planning to unveil a cryptocurrency. The most recent was in June when Patrick Gauthier the Amazon Pay VP indicated that Libra was a predictive play. The VP stated that he thought Libra was “speculative” and that at Amazon they don’t deal in the speculative but in the now.

Apart from Amazon, Facebook’s Libra could also receive competitive threats from other tech giants such as Apple and Google. A host of other US firms that could potentially venture into the cryptocurrency space include Microsoft, Twitter, IBM, and Walmart. Equally, Asian giants Alibaba and Samsung also pose a threat to Libra.

Acceptance of the Facebook cryptocurrency could suffer due to the current reputation of the social media giant. The company has been battling scandals over the years regarding data privacy violations. The company has faced criticism regarding its data privacy policy and has even appeared before US legislators over the same.

Almost 30% of the surveyed analysts said they would not use Facebook’s crypto because they had lost trust in the company. Over 10% of the analysts indicated that their stance against Libra was a result of general privacy concerns.

The company indicated that it formed a Libra-focused Calibra subsidiary. The main reason the company cited is to separate social and financial data of users. Despite this move, there is still no assurance that the storage of financial data and social media data will be separate. It seems like Facebook’s untrustworthiness reputation is unsalvageable, or the company has done a poor job of communication.