Facebook –  an 800lb crypto gorilla Facebook –  an 800lb crypto gorilla Facebook –  an 800lb crypto gorilla

Facebook – an 800lb crypto gorilla

Cryptocurrencies 4 minutes to read
MO
Michael O’Neill

FX Trader, Loonieviews.net

Summary:  No monkeying around. Facebook (FB: Nasdaq) will do to the cryptocurrency universe what Amazon did to retail. This morning, the social media behemoth announced plans for a new digital currency, Libra, and a digital wallet, Calibra.


This morning, the social media behemoth announced plans for a new digital currency, Libra, and a digital wallet, Calibra. 

The products are supposed to launch in 2020. The wallet, Calibra, will permit “easy and instant” transfers of the cryptocurrency, Libra. Facebook touts Libra as a “simple global currency and financial infrastructure,” built on a secure, scalable, and reliable blockchain. Libra is backed by a reserve of assets designed to give intrinsic value. Facebook’s market cap of $540.0 billion gives the plans instant credibility and clout. The stock jumped 2.6% at the open but quickly pared those gains.

The news knocked the cryptocurrency universe for a loop this morning, including BTCUSD, which fell 1.3% and ETHUSD which dropped 1.6%. Ripple (XRPUSD) defied the move, rising 1.2% thanks to yesterday’s news that the company is partnering with MoneyGram. (MGI) The partnership will allow Moneygram to leverage XRP in foreign exchange settlements. Investors liked the deal, as MGI jumped 125% today.

Wall Street is in a good mood. President Trump tweeted “Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.”

Trump’s tweet, expectations for a dovish Federal Open Market Committee meeting tomorrow and falling Treasury yields lifted stocks, led by a 1.82% rise in the Nasdaq.

The US dollar retreated modestly since New York opened. Trump’s tweet underpinned the commodity bloc currencies. USDCAD is underperforming because of weaker than expected manufacturing Shipments data.
Chart:USDCAD 30 minute. Source: Saxo Bank


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