Total 17 Posts
While technological change has been incredibly fast in the information era, the system of international payments has lagged behind. But once sovereign digital currencies start taking off, this will suddenly change.
Despite Libra currently being on shaky ground after several partners pulled out, Facebook remains on course to become a virtual nation state given not only Libra as a currency, but the company's pursuit to develop an open standard for digital IDs.
Probably worrying for Libra is that these withdrawals mean that the Libra Association is now left without any major global payments companies as members, something that could prove to be a hurdle should Libra want to facilitate and process payments from them.
Governments have long been suspicious of private currencies for good reasons, and Libra is no exception. We must not be distracted by its proposed technical complexity, and instead, focus on how this technology is organised, put to work, and how its rewards are distributed.
Ren Zhengfei, CEO of Huawei, says that China can and should launch its own digital currency to rival Facebook's Libra. This of course assumes that Libra will launch as planned in 2020 given the recent pushback from US and European policymakers alike.