• A new Binance Research report says that Facebook’s digital currency Libra could be game-changer in the payments industry.
  • The report compared Libra to Elon Musk’s spaceflight company in terms of the initial challenges faced by them

A new report from Binance Research says that Facebook’s Libra could be a game-changer in the payments industry. In June 2019, the social media giant announced its plans to launch Libra, a digital currency that will be monitored by the Libra Association, a Swiss-based consortium of independent members. 

Libra has been hindered by regulatory issues and has been criticized by many. The new report, however, compared Libra to Elon Musk’s spaceflight company. Musk also faced high-entry obstacles during his initial venture, but SpaceX offered innovative and cost-saving technologies that later changed space travel. Libra promises to transform the payment industry similarly by addressing the limitations of central banks.

An excerpt from the report reads:

It is important to note that there are very few payment systems, and most of them are operated by a central bank and of only regional scope. Libra could thus do to payment systems, 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 Cointelegraph, a Binance Research representative said that while new online money transfer services likeTransferwise have offered some payment innovations, they cannot offer everything that Libra can.

If Libra was to launch it would be Transferwise on steroids that caters to a large retail and business audience and could thus start a new wave of innovation and fundamentally change the current payments landscape.

Libra can impact financial inclusion if it opens access to third parties and adopts a user-friendly interface, according to the report. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

BCH flashes sell signals in 4-hour and 12-hour charts

The BCH 4-hour chart flashed a sell sign in the TD sequential indicator. After flashing the signal, the price has been trending horizontally over the next six sessions. The parabolic SAR has reversed from bullish to ...

More Bitcoin Cash News

VeChain Technical Analysis: VET upside capped at $0.015

The 4-hour VET/USD has broken above the downward trending line and the 100-day Simple Moving Average (SMA 100). In the process, the TD sequential has flashed a buy signal. The MACD has reversed from bearish to bullish ...

More VeChain news

Cardano Price Prediction: ADA could be poised for a potentially deadly selloff

Cardano established a new 2020-high on July 26 at $0.15. The digital asset is down 50% since its peak, and it’s currently trying to recover. 

More Cardano news

Reddit users should hurry up if they want to cash out MOON tokens, price is falling

Reddit's crypto community has worked out a way to sell its native token MOON for cash. The coin that was initially hosted on an Ethereum testnet and intended for internal use only is now converted to a mainnet currency and traded on DeFi-protocols.

More News


Bitcoin Weekly Forecast: Keep calm and HODL on until the USA elects the president

Bitcoin (BTC) partially regained the losses incurred at the beginning of the week; however, the upside momentum is still too weak to take the price out of the bearish territory and ensure a sustainable recovery. 

Read the weekly forecast