The Financial Revolution Goes into Overdrive
Just received Facebook's Libra White Paper so digesting it today before making any direct comment. For today I will focus on the news first announced a couple of weeks ago and what it might mean for us all.
Like many I was surprised to learn of the project but it did not take long to recognise that this was somewhat inevitable. A business with so many customers [31% of the world's population] is SO powerful but also open to intense speculation and attention - especially when things go wrong. It needed something new [for FB] that would appeal to its target audience and in truth, the generation who will do very well from the financial revolution which is now going into overdrive.
I said previously that FB will become the leading educator on the subject of cryptocurrency and that will help all practitioners and make it much easier to explain the benefits of a decentralised crypto [like Bitcoin, Litecoin, XRP etc] and a fully centralised currency like Libra.
The uninformed press will swarm all over the news today and many are saying things like the new currency is "like Bitcoin" - which of course it is not.
This is not what concerns me today - or at least for this piece. 28 huge organisations have paid a lot of money to be a part of this and will want a return on their investment. Visa, MasterCard, Paypal, Uber and Booking.com to name but a few - are heavily involved in social media advertising. With the 2.3 billion Facebook customers about to be brainwashed in crypto these huge companies stand to do very well. If not, why would they be interested - especially Visa and MasterCard?!
Facebook will deliver crypto to the masses and I believe it will reflect positively on all cryptocurrencies - especially the decentralised ones.
The new cryptocurrency will be controlled by Facebook - hence it will be a centralised currency. Their CEO has been talking to regulators, Treasury officials and Central Bank governors to whip up support.
This defeats the whole purpose of cryptocurrencies.
Facebook, through Libra, could control your data and share this with the establishment. Its not that much of an imagination stretch to believe FB will sell your payments data to its partners who in turn will solicit its own products on to you.
In the past FB has frozen user accounts - so what happens if the company decides [like the banks] that you are not allowed to use Libra and freezes your funds?
At this point I and many others are speculating; I have no facts and I am yet to go deep into the White Paper.
Overall it is, in my humble opinion, a red letter day for the crypto community, set to grow significantly in the coming months. I would not be surprised if Google and Amazon are watching closely.
So, dear reader, if you have not yet started your journey into this incredible medium or you have but have been frightened off by scare stories from the centralised system - banks, financial services, media etc - then you know what to do.