Facebook announced it will be launching it’s own crypto currency called the Libra. This will foster faster payments and transfers for almost nothing. Facebook tried to launch a payment system which failed terribly, because of the legacy banking and financial market systems. With Blockchain technology, security is increased and it is encouraging yes indeed, with sakeholders like Vodafone, Spotify, Uber and crypto wallets like coin base and a few other charities increasing goods and services consumption to the current 2.4 billion customer base is common business logic. Facebook will back up the Libra with a basket of reserves in bonds and forex reserves to avoid speculation and wild price fluctuations.
Facebook has accepted to relinquish some of its influence and power of the Libra by handing over the finance part to the Libra consortium which will be in Geneva and will have another department called Calibra which will be the wallet to store the Libra and keep customer information safe. Facebook has gone the extra mile to build confidence. Privacy and personal data is not Facebook’s strength, constant meddling and influence of global events like the trump election and fake news. Europe hasn’t taken this lightly and has made their feelings of disappointment known. Currently, there is no financial institution which handles over 2 billion users, across the globe and transferring money across borders with ease is yet to be realized. The good thing is Facebook is willing to give it a shot and risk a lot more in undiscovered territories. WeChat and Alibaba are success stories but business in China is different.
Let’s get discovering
Cryptography and blockchain technology is something to embrace not from current or past scams or mishaps like heritage coin or bitcoins dominance as the most popular asset built on intrinsic value with no asset backing. Facebook is willing to build on that momentum, to build something new and pushing a more equal distribution of wealth. Facebook is the best example of a constantly changing business, the modern firm hungry to control as much as possible from its value chain. This merging of business is crushing out small players, Amazon, apple & google are the best examples. These companies have diversified into search engines, marketing, online shopping and black Gold called in Data mining. All this comes with disruptions especially in the developing world were little or no regulation online businesses. Already so much money is avoiding taxation and regulation online.
For businesses who want to strive, grow and succeed, experimenting with the blockchain technology to provide a better service is key. Africa lacks ambition, always on the sidelines waiting for new ideas to copy from the west. Facebook’s leap into the market is a sure signal of the serious profits of online businesses and the crucial aspect of a wonderful internet profile. Let’s get experimenting, mobile money platforms should learn and observe the Libra, but for now, let’s get ready for the initial coin offering of LIBRA next year. That is a very viable investment.