Weekly FinTech Tip: Facebook’s Long-Rumored Libra Coin is Here, and There Are Consequences For Your Accounts
Why Facebook’s Plans to Create Their Own Cryptocurrency Might Worry You:
After months of rumors about Facebook starting its own cryptocurrency, those rumors were confirmed on June 18th when they announced their new cryptocurrency to be released in 2020, called Libra. Facebook also announced that they will have a wallet, called Calibra, and that this cryptocurrency has been created by a consortium. The Libra Consortium currently consists of 27 entities, including Coinbase, MasterCard, Visa, PayPal, Lyft, and Uber. These are names that all of us know. What does this mean, and how will it impact your business?
Well, it means more disintermediation. Currently, your DDA accounts are under attack. If it isn’t Target’s red card depleting it by two and three hundred dollars a month or Venmo taking another two or three hundred dollars a month out of your accounts, now it will be Facebook. They will likely use the ACH function to pull money out of your organization and put it into their account. What’s more is that account will not be interest bearing, at least for the user. Tune in next week for Facebook’s Libra Coin Part Two, where we’re going to talk about the rest of the challenges and some possible solutions.
This has been a FinTech minute. My name is John Best, and I am the author of Breaking Digital Gridlock. For more tips like these and to dive deeper into how you can break digital gridlock in your organization, you can buy my book on Amazon and anywhere books are sold. If you’re interested in learning about our consulting group and how we help people collaborate and work through their digital transformation, check out big-fintech.com. We would love to hear from you, so if you have any questions, concerns, or just want to chat, please leave a comment at the bottom of this post!
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