Facebook Announces Libra – The Digital Currency It Believes Could Shake Up Global Banking
Facebook has today announced its plans to launch a digital currency the social media giant is calling Libra. It believes Libra could
When Bitcoin was launched 10 years ago, the first
Fast forward to June 18
- Will make sending money anywhere in the world as easy as sending a message.
- Would mean transfer fees, delays and other barriers to quick, easy cash flow are a thing of the past.
- Offer those in the developing
world basicfinancial services and protection against aggressive inflation.
- Spark a wave of innovation in financial services comparable to the internet’s impact on information sharing, retail and general services.
Facebook’s pitch is that Libra, named after the Latin word for a unit of mass and the root of the word ‘lira’ or
The plan is that the buying, selling, holding, sending and receiving ‘
The pitched advantage over
In what can be viewed as an acknowledgement of trust issues over its record around the misuse of personal user data and the role of its social media platform in the spread of misinformation, Zuckerberg said that Facebook planned to outsource the running of Libra to respected figures from the worlds of finance, technology and NGOs.
But if transfer fees will be close to zero, what’s in for Facebook to fund the launch of Libra? It would be expected to boost advertising revenue by making the purchase of ads faster and easier. It could also be a new source of data used to improve ad targeting. It would also help Facebook’s messenger apps catch up with Tencent’s WeChat. It already offers payments transfers and some other basic financial services.
Tencent was gearing up to take WeChat global, posing a direct threat to Facebook in the West. However, that strategy is on hold amidst the complication of fraught U.S.-China trade relations and Facebook see a window of opportunity to regain ground and pin WeChat within the confines of the Chinese-speaking world.
It’s early days but over the next year the world be watching and waiting to see if a social media platform turns out to be the central actor in a global financial revolution.
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