Libra could revolutionize payments as Spacex conquers space

Libra could revolutionize payments as Spacex conquers space (Binance Research)

 

Are we really at the dawn of a great revolution in payment systems with a Libra (≋) back on track, or are we placing too much hope on the shoulders of Facebook crypto? Comparing a global payment system to a company that turned the space industry upside down, you had to think about it.

SpaceX and Libra: same fights

After diving into Libra’s latest White Paper, Binance Research released a report in which it argued that Libra could revolutionize payment systems like SpaceX, the launch of which had profoundly changed the space industry.

The comparison between the two industries is particularly interesting: these are indeed two sectors where the dominant players are well-established institutions and where the barriers to entry are high.

Central banks operate most of the payment systems which generally have a national or regional scope.

The possibility of creating a global payment system, as indicated in the last White Book of Libra, represents an innovation which would have many consequences (presented as positive): the acceleration of processing times and overall transaction speeds, as well as executing transactions in a new kind of financial framework - "a simple global currency and a financial infrastructure that empowers millions of people."

A clone on steroids

Despite the emergence of new players such as TransferWise, the model proposed by Libra remains deeply innovative: a Binance representative explains that the adoption of Libra would give birth to a TransferWise clone on steroids.

While TransferWise is confined to the retail industry, Libra is targeting a broader target and would cause a transformative wave of payment systems.

Many countries are now exploring the possibility of allowing their central banks to issue state cryptos.

The first version of the White Book released in June 2019, had caused an outcry from the regulators, an opposition that was such that Libra had to offer a second redesigned version of its White Book to show white legs.

When is a world currency? DigiByte (DGB) could do the trick if Bitcoin (BTC) is too "precious" to be considered a transactional currency. The strength of Libra? It lies more in the big names who carry the project at arm's length and the resources they have, than in a truly innovative concept. I can obviously be wrong but ... I say that, I say nothing.