I’m sure by now many of you have heard about Libra, Facebook’s planned cryptocurrency. There is a lot of controversy surrounding this new creation, which is backed by mixed reactions from the general public.
In short, Facebook is building its own secure payment network for users around the world.
Since the social media giant as access to some 2.5 billion monthly users, there remains a huge opportunity to expand into a new sector for long-term viability.
And that sector is of course currency, more importantly, digital currency.
While we won’t go into the technicalities of how this new platform will operate, we will, however, give you some food for thought.
Food For Thought
As it stands, there are roughly 7.7 billion people on earth according to Worldometers.
Various studies show there are some 1.7 billion people that do not have a bank account.
Roughly 1 billion out of the 1.7 billion are mobile phone users with about half, having access to the Internet.
When I hear about studies such as these, you have to give some wiggle room regarding the stats.
It’s hard to fully determine what are accurate numbers versus inflated numbers, but regardless, 1.7 billion people is a decent ballpark figure to go off on.
Because of Facebook’s massive reach, there is a solid opportunity to step into and succeed in the global currency space.
In order to gain worldwide acceptance, Facebook needs to overcome a few obstacles.
The first is your privacy. Facebook knows it has a rough track record when it comes to this issue.
As a business, it needs money to operate, and its primary source of revenue is in advertising.
Since Facebook has a large database of information on its users, Advertisers can use the platform to effectively target their audience.
Anytime that database of information is compromised in any way, it makes headline news.
More Facebook users are increasingly cautious about what they share on their profiles as a result.
Facebook has gone to lengths to improve its policies, but in all fairness to the company, this is truly a difficult task.
The second is the Petro-Dollar. The US dollar is the reigning reserve currency of choice.
The overwhelming majority of trade is conducted through this global currency, and switching away from it, is going to be pretty tough for any nation or organization for that matter.
And if you think President Donald Trump will allow anything to disrupt the domination of the Dollar, you have another thing coming towards you.
…and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Countries like China and their central bank are taking steps to develop their own digital currency to combat Facebook’s initiative.
India doesn’t even fully understand the full scope of Libra and isn’t on board.
Both China and India are massive economies, and for these countries to jump on board to a new digital currency would take a lot of trust on their part.
Countries like China and Russia are seeking ways to ditch the Petro-Dollar which is damn near impossible. These countries simply want to avoid the aftershock of sanctions.
Japan, South Korea, Singapore, and others aren’t on board either.
It seems as if Facebook as an uphill battle to climb and I’m sure you can see why.
If there is one thing you already know about Facebook, is its massive influence.
27 companies are supporting Facebook Libra, and these big corporations are some of the best heavyweights in the world.
- Andreessen Horowitz
These are some of the lists of companies helping to launch Libra this year, as a global cryptocurrency.
Would You Use Libra?
While I can’t see anything upsetting the dominance of the US Dollar in the foreseeable future, I do see various alternatives springing up.
Cryptocurrency continues to stay in the news and is top of mind for some people.
It’s an alternative way to conduct business in a global economy that’s been moving towards a cashless system for the past decade.
Facebook Libra is a smart move from a business perspective.
Mark Zuckerberg is constantly developing his platform, and he’s always looking towards the future.
Companies that operate this way, tend to stay in business for a very long time.
Apple, Samsung, and Google have their own digital wallet platforms.
Tech companies are pushing towards digital currency in one form or another.
With that said, many people are against Libra, and there are some that are for it.
I think it’s fair to at least give Facebook’s cryptocurrency a shot in the same way as we did for Apple, Google, and Samsung.
Sure Libra is a different animal contending for space in the same jungle.
As of now, I can’t say that I’m for it or against it. I need to see this cryptocurrency in action before I can pronounce judgment.
It’s taken me a while to gain some level of trust for using PayPal to process payments.
We also use Stripe as our preferred method of collecting payments for our services.
My point is, seeing something in action, and seeing something in the development stages are two different animals.
For now, I’m more or less neutral when it comes to Facebook Libra.