On 2 May of this year, Facebook registered and headquartered its new firm, Libra Networks, in Switzerland. Is it a coincidence that this is also the home of the United NationsOffice at Geneva and the OlympicsCommittee?
In such company, one might think the leadership at Facebook wants Libra to connote a sense of universality, a sense of reaching beyond even the concept of supranational, to borderlessness. (Historically, haven’t borders been the stuff of political imagination made tangible through force?)
While Libra has been initially touted as a money transfer tool to “bank the unbanked” it seems, potentially, to be borderless moneyfor, potentially,borderless people (willing or pushed).
Regarding those who willingly choose borderlessness are the youngest generations, particularly that of the digitally native Generation Z who are set to fill 36% of the workforce in 2020.
46% of GenZs already work as freelancers today. They outspokenly favour fun and flexibility and view remote work more a necessity than a privilege. These have the mindset to fuel Libra.
98% of GenZs routinely made a digital footprint and depend more upon social networks more than any previous generation; so, yes, they are also most likely to trust Facebook (despite its alleged record) as a valid instrument of value transfer and exchange.
Welcome the Internet of Value (IoV).
Add to this that Libra Network is backed by 27 strong partners, including Visa, Vodafone, eBay, Uber, and PayPal, as well as a 2+billion-strong user base globally, and you can stop asking whether Libra can realistically become a fully consolidated, relevant currency.
Yes, it can; and probably will. Launch is set for the first half of 2020. Expect delays but 2020 is still tomorrow.
This means that those concerned with issues of governancecan rest more quietly as:
“Facebook won’t fully control Libra, but instead gets a single vote in its governance like other founding members of the Libra Association. ... The association will promote the open-sourced Libra Blockchain and developer platform with its own Move programming language, plus sign up businesses to accept Libra for payment and even give customers discounts or rewards” (https://www.coindesk.com/facebook-registers-secretive-libra-cryptocurrency-firm-in-switzerland).
Now I ask myself:
What percentage of micro and small businesses (all businesses?) are now dependent on social media to generate revenueand to maintain the infrastructure that generates their revenue?
On a larger scale, what percentage do global companies lose today through costs of currency transfer and conversion?
For example, I imagine a blouse sold via Libra at a store in Columbia by a large manufacturer that has a shortfall at its China or Australian headquarters. No transfer, no exchange|conversion rate. No delays. No worries.Tens, perhaps hundreds of millions saved by that fashion manufacturer “over night” by avoiding these, till-now, standard costs of doing business internationally.
Remember when analog phone calls were the norm along with those ridiculously high long-distance bills? Can you see the same phenomenon here? Eventually, analog phone systems simply faded away.
FB is acting as "Trailblazer". Once it is fully onto that path, other big players will follow or lose out.
How long before our developed societies go cashless altogether?
Will you use Libra and the Calibra Wallet?