A current report from Binance Research claimed that Facebook’s scales are as harmful to the payment industry as SpaceX is to interstellar travel, but why?
When he entered the rocket industry, SpaceX found that an industry was burdened with high entry barriers and was largely dominated by public market participantsA representative from Binance Research informed Cointelegraph in an email.
thats why The industry also delivered “little movement” as there was little incentive to innovate beyond the gradual improvement of the product“said the representative. “The same applies to the current payment landscape”.
Limits limit the current payment systems
In a recent Facebook Facebook report on Libra Binance Research concluded that Libra would disrupt the payment world in the same disruptive manner as Elon Musk’s SpaceX in the missile industry.
Central banks control most payment structures and require large networks that rely on massive usageThe Binance Research representative said that it was not just a large initial investment that was required.
“Because BC [Bancos Centrales] They usually operate high-quality payment systems (real-time gross accounting systems or LBTR). Most payment systems are national and not global“explained the representative.
The representative mentioned examples of private players, although these participants are old statesmen who entered the payment game a long time ago.
Newcomers shake the system
With the introduction and introduction of Transferwise and other new products, the payment world has experienced some innovations, but it is nothing at the level of the scale. “Transferwise focuses even more on retail,” said the representative, adding:
“If Libra came onto the market, it would be Transferwise for steroids that appeal to a large retail and business audience and thus trigger a new wave of innovation and could fundamentally change the current payment landscape.”
While numerous countries are examining digital currencies from central banks, the global scale of the Libra still seems to have the advantage. It is difficult to predict how such a system could affect the global economy. The withdrawal of the regulation continues against the scales, so that the start date is unclear at this point.
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