Facebook's digital currency, Libra, could trigger a wave of innovation in finance
A GLOBAL DIGITAL currency would make sending money across the world as easy as texting. It would do away with fees, delays and other barriers to the flow of cash. It would give those in less developed countries access to the financial system and a way to protect hard-earned wages against runaway inflation. It could trigger a wave of innovation in finance, much like the internet did in online services.
So far, so familiar. Messenger already offers payments to Americans. WhatsApp is testing a similar function in India. But these services do not cross borders, and require users to have a bank account. Fintech firms like TransferWise, which offer international transfers to the banked, take a 4-5% cut to wire $200—a third less than Western Union but not nothing. Libra will be global and cheap, and require no bank accounts: more bitcoin than Venmo.
Technically and financially, Facebook could probably pull off such an ambitious undertaking on its own. Not politically. Its culture is more measured than it was in its early years, when it aspired to “move fast and break things”—but only a bit. Chary consumers may choose not to entrust their money to a social network which has, until recently, leaked their personal data left and right. Unless users appear on board, merchants may be reluctant to embrace the currency, however hassle-free.
To get Libra going, the consortium will pay merchants to offer discounts to customers who pay in the new currency, financed by a $10m one-off fee each member pays for a seat at the table. Eventually, Facebook would like anybody, not just the consortium, to be able to generate the currency, move it and offer services on top of its “blockchain” . At that point, Libra would truly turn into Bitcoin, minus the kinks and the libertarianism.With a project with so many moving parts, much can go wrong.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Facebook wants to make cryptocurrency mainstream. Here's howFacebook announced its digital currency project, Libra, which will be available to a global audience through the company's platforms.
Consulte Mais informação »
Facebook reveals Libra cryptocurrency, sparking new privacy concernsFacebook reveals Libra cryptocurrency, sparking new privacy concerns via ReutersTV
Consulte Mais informação »
Facebook Unveils Plan for Own Currency Called LibraFacebook already rules daily communication for more than two billion people around the world. Now it wants its own currency, too.
Consulte Mais informação »
Facebook reveals Libra cryptocurrency, with lofty goalsFacebook Inc revealed plans on Tuesday to launch a cryptocurrency called Libra, ...
Consulte Mais informação »
Facebook to launch 'Libra' cryptocurrencySocial media giant hopes to offer unbanked consumers access to financial services for the first time but consumer privacy concerns or regulatory barriers may present significant hurdles.
Consulte Mais informação »