Tuesday
June 25
2019

Viewpoint: Who’s Going to Use the Big Bad Libra?

By Jon Evans

There is so much to write about Libra, and so much which has already been written misses the mark, mostly, I think, because most pundits haven’t spent much time in the developing world, which is very clearly the target market here.

I’ve seen apocalyptic reactions warning of Libra ushering in a new dystopia: the alleged logic appears to be 1) Libra will immediately conquer the world 2) Libra comes from Facebook 3) Facebook is evil 4) it’s the end of the world! I am most baffled by that first postulate. If you’re a rich Westerner, there are already dozens of payment systems out there, most of which offer huge advantages compared to Libra, such as reversible / contestable transactions, frequent-flier miles, and credit lines.

I’ve seen dozens of technical and regulatory and political and high-level analyses of Libra, many of which are worthwhile, but so far, little which has dwelt on its actual intended users, according to the white paper: the unbanked. That isn’t quite the category for whom Libra is something new, interesting, and important.

Photo courtesy of Jan Arendtsz.

Source: TechCrunch (link opens in a new window)

Categories
Finance, Technology
Tags
cryptocurrency, financial inclusion, financial innovation, financial services, unbanked