The list goes on but all this hype is blown out of proportion and people get worried too quickly and too much. We will discuss each point one by one.
Can Libra replace fiat currencies?
In short, Libra cannot. Just the thought of that may sound silly because fiat currencies are the vehicle in which governments internationally accept taxes.
There is no government in the world today that will agree to accept Libra or other cryptocurrencies as an alternative to their own currency. This will mean taxes will come to an end and governments feed on taxes.
The Facebook team clearly states:
In time, we hope to offer additional services for people and businesses, like paying bills with the push of a button, buying a cup of coffee with the scan of a code or riding your local public transit without needing to carry cash or a metro pass.
The fact of the matter is; these sort of transactions are not that major. Usually, individuals with money left over to spend, use it that money to pay their taxes, rent or other bills. So until the time comes when landlords, companies and shopping centres begin accepting Libra, there is no chance that it or other cryptocurrencies will be replacing fiat currencies.
Financially speaking, Libra is not a threat, even if all its users adopted the cryptocurrency for transacting, purchasing and selling, it won’t pose a threat to fiat currencies.
On the other hand, Libra coin will bring about Facebook’s wider aim of becoming the standard setter for digital identity which can be an issue for some individuals, hence the reason why some may not approve of it.