In spite of all the bluster, partners bailing, and constant congressional hearings, we’d put our money on Libra eventually being a things and Facebook getting what it wants – its own native payments system. Call it crypto, call it ‘paypal next’, call it whatever you want, but it is going to happen. It just might look, sound, and feel different than what the social media giant initially envisioned.
“Meanwhile, the furor over the controversial Libra has begun to take a more political undertone, both within and outside the United States. Arguments for and against the project now seem to include issues surrounding the trade war between the U.S. and China.”
“In Europe, China’s response to Facebook’s crypto project (the creation of yuan-pegged digital currency) and Libra itself, have sparked some commentators calling on the European Central Bank to adopt a digital currency for the EU. In some ways, it appears Libra has ignited a new currency war, one that might take place in the digital realm, with several counties floating their own central bank digital currencies (CBDCs).”
“For Libra, the regulatory hassle might constitute only part of its trouble, as the project could face stiff competition from payment giants, especially in China and other parts of Asia. Some of these payment companies are already identifying Libra as a potential competitor ahead of its launch.”
Whether it executes specifically on its initial mission, or some ‘frankenstein’ version of Libra emerges after checking itself out of the regulatory hospital – you can still bet that the powers that be at Facebook will eventually prevail. Libra will happen.
Instagram, WhatsApp, Oculus, and a number of other acquisitions (don’t forget the dummies at Snap that should’ve sold to FB); Zuckerberg always gets what he wants.