Updated: Jun 21, 2019
Facebook’s Libra Currency
This week Facebook announced Libra, it’s blockchain currency just weeks after Apple announced their own credit card. Below is my take:
The same way the internet opened doors for media personalities, I feel this could be the same for individuals acting like banks. Especially in developing countries such as those on the African continent. (Back to that in a moment)
Who stands to loose?!
We all know that when such big changes happen there's always going to be winners and losers.
Let's first take a look at who could loose ;
• Western Union, mobile money and similar money transfer service providers.
• Banks and governments losing out on transaction fees.
• A big threat to the big card players - Visa and MasterCard.
• Users/consumers who will be able to send or receive 💰 without having to incur fees for doing so.
Clearly, Facebook has created a blue ocean 🌊 and the options are almost limitless.
Let's first of all look at some advantages here;
A) They have the infrastructure.
B) Developers, and
C) The market to serve.
Whether we decide to call this a fad (the same way we did with Amazon, Internet shopping and other internet-based services) or not, this too can not be stopped.
Unlike early players (such as bitcoin) this time round the timing feels just right for “smart-money”.
When we look at third world countries, a large percentage of the population is unbanked.
A descent number of them have/use smartphones and, are on at least one Facebook-messenger, Instagram or WhatsApp if not all of them.
This is a huge number considering the global population. This is percentage banks hadn’t been able to tap into yet due to lack of infrastructure.
This means this group will not only join the banking market but will also have the bank in their own pockets, whereas before they’d have had to walk/drive miles to find one 🏦
When (not if) this takes off, one will be able to send coin(s) say from the USA to another country in Africa for example and they get a beep (message) on their phones, check account, go to the supermarket to buy some groceries. All in an instant!
Soon we'll look back at today and it will seem so ancient we’ll want to deny it....!
Last year we saw Zuck going to some African countries (Nigeria, Kenya), talking to entrepreneurs in markets, street vendors, restaurant owners. I don’t think that was random…..!
Well, some of these traders have large sums of money they might not want to keep in their currency for different reasons.
Libra could act as a bridge especially for those who trade across borders.
Cloud Safe ($$$ Libra)
Where bank to bank transactions could take days across boards, this will be instant... ka-ching!
Possibly the start of an inclusive economy Elon has been on about for ages.
If we took Africa as an example, with the high percentage of youths (working power) many learned, are computer literate, have smartphones.....!
Say they create online products or provide online services, get paid in blockchain or take advantage of smart contracts, they could easily compete on the global market, while charging less due to their low cost of living. Domino....!
Key pointers: Unlike other blockchain currencies, Libra is said to be the only one that has a reserve (liquid assets) to support stability and value preservation.
Looks like the future they promised us is finally here and I am ready for it.
I am excited to hear your opinions and comments.
2019 - is shaping up nicely
Be - Nice
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