Libra, digital renminbi not a threat to Bitcoin: Billionaire Novogratz

Soon after Facebook CEO Mark Zuckerberg testified in Congress supporting Libra initiative, numerous entrepreneurs have gone public to give their take on the episode. American Billionaire Michael Novogratz featured in a CNBC interview to highlight some of the mistakes that Facebook made while introducing the idea of launching in house cryptocurrency. He said,

“If Facebook and Libra came out originally and said we are building a global payments system, turning everyone’s hair on fire. It feels like  they are now pivoting (from that idea).”

Novogratz pointed out that Zuckerberg rightfully highlighted China’s ongoing innovation in regards to building their own cryptocurrency. Interestingly, he also claimed that neither Libra nor renminbi-backed cryptocurrency will be a threat to Bitcoin’s position, saying,

“They are actually an additive to Bitcoin.”

He sufficed this claim by stating that both Libra and digital RMB are new forms of currencies and payment systems, whereas Bitcoin is gold. In that context, Novogratz mentioned that “gold’s not a threat to the dollar nor will Bitcoin be a threat to these payment currencies.”

As Libra nears its launch amid regulatory restrictions, speculations around every country building their own digital currencies have become the new normal. In such scenarios, countries will need a bridge currency like XRP to exchange from one to another, and a currency such as Libra will be able to find many use cases it claims to deliver. 

It is also important to note that Congressman Ted Budd had mentioned in Mark Zuckerberg’s hearing that “Libra is not an actual cryptocurrency but BTC, ETH and XRP are.”