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Cramer: Libra Digital Currency Is Transformational For Facebook

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Cramer: Libra Digital Currency Is Transformational For Facebook

Jim Cramer said Facebook, Inc. (NASDAQ: FB)’s planned launch of the digital currency Libra has reinvigorated the stock, speaking Tuesday on CNBC’s “Mad Money.” 

“Imagine if Facebook can get a piece of the payment space, it would be huge, and it will be,” he said.

Although Cramer said cryptocurrencies generally come with a lot of speculation and bullish talk of massive disruption, the CNBC host said Libra does not have to be revolutionary to be useful to Facebook’s 2.7 billion users.

Still, Libra’s attachment to Facebook makes it a concern to regulators.

“The reason why there is opposition to Libra is the very thing that makes it a big deal: it’s attached to Facebook via its messaging platform, potentially connecting to billions of people over the world,” Cramer said.

“To the legislators that are worried about Facebook using your data, the idea of them getting into the payments space it might be alarming.”

Despite these concerns, Cramer said that it’s a good problem to have from an earnings per share perspective. 

Ever since the company released its white paper on Libra, it’s been the big-cap stock to beat, he said. 

Facebook shares were up 0.7% at $196.37 at the time of publication Wednesday. 

Related Links: 

Facebook's Libra: What It Is And How To Use It

Analyst: Facebook's Libra A 'Benefit' For Bitcoin, Not A Competitor
 

 

 

 

 

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