News Bitcoin was Facebook’s first choice says Abra's CEO

Bitcoin was Facebook’s first choice says Abra’s CEO


- Advertisment -

Bill Barhydt, CEO of Bitcoin investment platform Abra, claims that Facebook staffers told him the company wanted  to use Bitcoin as a cryptocurrency to power its payment platforms. But the social media giant had “no choice” except to develop its own cryptocurrency, due to Bitcoin’s inability to scale.  

Barhydt made his remarks last week on the What Bitcoin Did podcast, hosted by Peter McCormack, where he emphasized that his assertion was based on conversations with a number of people directly involved with Libra, Facebook’s cryptocurrency payment platform.

Earlier this year, Abra became the first platform to launch fractional-share investing with Bitcoin, and counts American Express Ventures, Foxconn Technology Group and Arbor ventures among its investors.

In the podcast, Barhydt said he had taken part in multiple conversions with Facebook team members, and they told him that their initial goal was not to create a cryptocurrency, but a payment platform, that served their users’ needs.

“Ideally—from my discussions—they actually would have preferred to use Bitcoin. I think there’s a huge belief in the system. But if you want to build a remittance system and you want to build a cross-border commerce system and you have 1.2 billion users today, what would happen to Bitcoin? Fees would skyrocket. Doing anything with Bitcoin that was transactional was effectively untenable.”

Barhydt said that Facebook had considered all the options, including Bitcoin’s scaling solution, the Lighting Network. 

“These are smart people. They’ve looked at Lighting, they’ve looked at Bitcoin, they’ve thought this through. And they came to the conclusion that Bitcoin is not optimized to be a payment network, Bitcoin is optimized to be digital cash right now,” said Barhydt. 

He added that this wouldn’t necessarily hold true forever, particularly when the Lightning Network was ready. But he said that Facebook was determined to  build a system that was scalable today for payments on its platforms: WhatsApp, Messenger and Instagram.

Earlier this week, Twitter CEO Jack Dorsey took a swipe at Libra, and doubled down on comments that Bitcoin will become the internet’s native currency—and not a commercial alternative. 

But while Barhydt admitted that Libra may currently be little more than a private database, he said Facebook had future plans to create something akin to a “scalable Bitcoin.” But “you can’t go fully permission-less out of the gate.”

Perhaps Mark Zuckerberg and Jack Dorsey’s views are more similar than we thought.




Please enter your comment!
Please enter your name here

Latest news

Network Security Using Cryptography: Everything you need to know

This article will describe what is Network Security Using Cryptography and everything you need to know before...

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when dealing with a decentralized and anonymous currency, but does bitcoin...

Crypto can’t thrive in the real world – but stablecoins can

We can safely say that the hype about cryptocurrencies is pretty much over. The claims of Bitcoin...
- Advertisement -Bitcoin was Facebook’s first choice says Abra's CEO

How to double your crypto

Most of us have a small gambler deep inside our souls. We love to feel the thrill...

Cryptocurrency Top Security Risk Concerns: What You Can Do to Protect Your Crypto

A report by CipherTrace revealed that in the first half of 2019, criminals and fraudsters stole more...

Must read

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came...
- Advertisement -Bitcoin was Facebook’s first choice says Abra's CEOBitcoin was Facebook’s first choice says Abra's CEO

You might also likeRELATED
Recommended to you