Facebook’s cryptocurrency, Libra, is a whole new world and will be a game changer for business.
What is Libra?
You’ve probably heard of cryptocurrency (‘crypto’ for short) and possibly Bitcoin too although you probably don’t know exactly what they are and how you use them.
And now Facebook has joined the Crypto party with the announcement of their Libra coin which will be available next year or so (no specific date). Facebook have come up with this very handy infographic to help you understand how it will be used.
Whilst this announcement was long-expected, it has sparked multiple discussions on how it will impact the the crypto market at one end, and at the other, how it will affect the whole global economy!
How is Libra likely to change things?
Now that might sound a bit dramatic, but people like Matt Levine (a Bloomberg Opinion columnist covering finance. He was an editor of Dealbreaker, an investment banker at Goldman Sachs, a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen & Katz, and a clerk for the U.S. Court of Appeals for the 3rd Circuit.) Impressive eh?! And the reason that we have listed his stellar biography, is that he has said:
“If Libra does catch on, it’s likely to displace currencies like the dollar. That’s because if you spend mostly Libra, perhaps because you buy most things online, you’ll only convert your Libras into dollars for when you need to spend IRL money, and the dollar will begin to seem annoying to you since it keeps moving up and down relative to the Libra.
“The goal is for Libra to be more useful than any national currency, accepted in more places and with fewer complications.”
Isn’t that amazing?! A whole new global currency. Which from a marketing point of view could be an absolute game-changer (which is why we are talking about it now). It could open up a slew of new opportunities with different markets around the world and completely change how companies and consumers interact with one another.
In addition, it could add many millions of new people into the global economy: estimates suggest that there are 1.6 million ‘unbanked’ adults in the UK alone, and though they are excluded by traditional banking rules a cryptocurrency like Libra may be far more open. Not to mention, that countries who see wild fluctuations or declines in their native currency (like Venezuela at the moment), could see their entire populations flip over to Libra. You can’t help but see the possibilities can you?
Now all this is pretty new, but you know how we like to trendspot here at TMMC, especially when it’s likely to be a gamechanger. Consequently we are keeping close tabs on this to see how this will impact all kinds of businesses in the future and how we can help our clients stay ahead of the game.
Watch this space!