Libra, Facebook’s infamous crypto coin, will be a great tool for everyone. It will empower people to make instant micropayments which are impossible in the case of mobile monetary transactions.
Libra globally increases arouse many issues around the globe. Libra, like most crypto coins, will operate on the blockchain network. Taking advantage of that fact, regulators can force higher transparency, if they decide to attack the Libra’s structure. Presently, there doesn’t exist high transparency with mobile monetary transactions, because the legal structure has never demanded it.
Users will have the opportunity to transfer money very easily and quickly just like sending a photo from your phone. It is possible that Libra will interrupt the use of mobile money, and be a better and more convenient method of transfers: faster and cheaper.
Financial rules will be changed everywhere around the globe, however, Libra will not supply the exact scale of “liberation” like Bitcoin.
Libra will have a strong influence on the balance of payments and central banks should take this into account. For instance, car transactions will take place in Libra and they won’t be controlled by central banks.
It is possible that mobile monetary transfers and deposits in bank accounts may experience cuts. In the face of such changes, central banks will react harshly, they can even try to ban Libra or the use of any other crypto coin. But such an approach will be unreasonable as cryptocurrencies cannot be banned fully.
There is a major difference between Facebook and central banks. Facebook has 2 billion users and if Libra gains success, central banks will argue on the effects of the vast acceptance by users.
It is expected that Facebook is going to gain the attention of Libra users since the coin will be supported by “low-risk securities” and “basket of currencies” will require holding funds in a central bank or other financial institutions.