Posted 1 year ago | by Ben Armstrong
Binance Research Suggests Payment Sector May be Rattled by Facebook’s Libra
According to Binance Research, Facebook's Libra project could change the face of the payments sector. It found that this new technology after conducting deep dive into the proposed payments platform.
Binance Research recently commented on Libra's most current whitepaper, which is a lengthy report. Part of Binance Research is claiming Facebook's proposed asset could significantly rattle the payments world.
The report stated:
"Libra’s envisioned global payment system could do to the payment industry what SpaceX did to the space industry: shake the foundations of a well-established sector with high entry barriers...The mere advantage of issuing widely-available programmable money would already initiate manifold efficiency gains”
According to the Binance report, Libra made several changes to its plans, apparently in response to regulators. Facebook’s project recieved several oppositions from regulating bodies, and development was halted due to several court hearings after the initial whitepaper was published in June 2019.
Binance Sees Libra as a Game Changer
Facebook's Libra positions itself as a new financial framework for the global online payments space. The latest whitepaper discloses:
"Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people."
Binance Research cited Libra's most recent whitepaper and pointed out three staples of the endeavor, which includes Libra's blockchain, Libra Coins as stablecoins with backing stored at the Libra Reserve, and the Libra Association, which is an independent governing body.
It May or May not Work
Binance Research made a comparison between Libra and Elon Musk's SpaceX company, which a CNBC article detailed how greatly SpaceX had altered the space sector by improving speed and turnaround time for rocket trips.
Binance Research pointed out that Libra may also dramatically change the payments sector, which adds faster turnaround times and overall transaction speeds.
Besides, the report added to its SpaceX comparison note, "there are very few payment systems, and most of them are operated by a central bank and of only regional scope." Facebook’s Libra holds greater reach and therefore potential since being a global operation.
Of course, people will have to trust Facebook to a huge degree, and people around the world will also have to trust that Facebook will keep their data safe. Given the track record at Facebook, all of this seems like a hard sell.
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