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Surprise! Facebook Pay has arrived in Brazil. What is the next step now?

June 18, 2020

We know that the scale is in a regulatory limbo. But that doesn’t mean that Facebook is with arms folded. Mark Zuckerberg doesn’t stop. Move fast. And yes, that’s right. He breaks things along the way, but that doesn’t discourage him. Governments are passing by, regulators are changing and the wind is changing, but companies like Facebook have an iron will. Advertising is no longer enough. And of course fintech is the next limit for Facebook. Sooner or later, somehow, Facebook will make the world what AliPay and WeChat Pay China did. At least that’s the goal.

The Libra project was announced with great force, but the cross winds pulverized the meteorite. It was beautiful as long as it lasted, but the rock couldn’t touch the ground. What we saw was a shooting star and nothing else. If we look back now, we can say that it was taken up too hastily. The scale of the project intimidated everyone. This force instigated opposition.

Read on: Calibra renews itself as a Novi to avoid confusion with the Libra

Surprise! Facebook Pay has arrived in Brazil. What is the next step now?Surprise! Facebook Pay has arrived in Brazil. What is the next step now?

Governments don’t want to lose their monopoly on money. And much less in the middle of a currency war. Basically, this whole issue of money laundering and the fight against terrorism is an excuse. Obviously it is important. However, what worries governments the most is capital control. Especially the leak. A currency like Libra, for example, would take over a substantial part of the transfer market in a few months. And it would promote a double economy. You would have Fiat and Libra at the same time. And the user would use one or the other depending on the occasion. Governments tolerate this all the time on a small scale, but on the Facebook scale it’s big words.

Now Facebook is making the wise decision to play cautiously after the slap it got from regulators last year. They move quickly, but behind the scenes. Like the swimming of the ducks. A duckling that swims on the lake moves like sailboats. In a calm and calm sailing. You can see that from above. But below the surface, the story is different. There we have the propellers of a nuclear submarine. Let what remains is a lagoon! Good, This is how Facebook is with its fintech projects. We are faced with an obvious passivity that hides a large underlying dynamic. Facebook weaves its network and plays stupid. First, Brazil. Then the world.

With a publication on his Facebook account, Mark Zuckerberg announced the introduction of a payment system via Whatsapp for all users in Brazil. According to Mark, Brazilian users can now send and receive money the same way they share a photo. Easy. Of course, the system is based on Fiat and not on crypto. Users send and receive Brazilian reals. Aside from the details of the shape, the bottom line is that Facebook is officially getting into the money business. There is no going back.

Read on: WhatsApp starts electronic escrow payments while Libra remains trapped in the regulatory maze

Many in the crypto space threw their cry into the sky with the Libra project. The whole thing is a centralized cryptocurrency. All this from the wolf in disguise and much more. But I’m afraid the average Brazilian won’t get too involved. Centralization does not give most people a headache. We have to wait to see the numbers, but I dare to say that Facebook Pay will become fashionable in Brazil. What’s more, I’m going on. A Facebook Pay / Bitcoin market will surely open very soon. While many are crying, the Bitcoin infrastructure is growing faster. Whether we like it or not, the truth is that Facebook is an ally rather than an antagonist.

The complete digitization of money is a fact and its universal adoption is the future. And it is a mistake to impose the idea of ​​a crypto that rules everything in the style of the one ring. We will certainly have a fair, no hegemony. And the collective diversity will strengthen individual projects in the same way that the variety of options enriches the food fair in a shopping center. Totalitarianism slows down progress. This all-or-nothing idea is a dream. The economy was always mixed. This is because there is no good instrument for everything. There are things that work well for one thing but not for another.. It is therefore best to use several instruments at the same time. It is not the end of the world. It’s only practical.

Apparently this new system will use Visa Direct technology and its security is guaranteed by Visa Cloud Token. Banco do Brasil, Nubank and Sicredi are the first banks in the world to use this technology and are now joining Facebook Pay. In order to, Credit or debit card, Visa or MasterCard users of these banks can now use this new Facebook service via WhatsApp.

WhatsApp is said to have over 100 million users in Brazil (57% of the population). This makes Brazil the second largest market for the platform after India. It is obvious that this start in Brazil is with a view of the world. And that brings the scales closer every day. Facebook will be forced to change its original plan. But he definitely won’t leave her. There will be delays, but it will adapt. In the end, Facebook will be a very important player in the global fintech industry.

Brazil is currently not at its best due to political tensions and the corona virus. The pandemic hit the southern colossus very hard. Brazil is already the second largest country in the world with the most deaths from the virus. The epicenter of infections is now in Latin America. In the midst of the health crisis, protests come and go. Some to support and others to reject controversial President Jair Bolsonaro. Banners against racism and fascism invade the streets of Brazil as digital transactions become more popular.

Read on: According to Andreessen’s Katie Haun, more Facebook Libra-like projects will follow in the future

From a regulatory perspective, fintech, bitcoin and cryptocurrencies are not unique in Brazil. It has never been so clear that this sky is blue. However, they let a kite in. You don’t have to be a genius to know that Facebook uses hot bath technology here.

Suppose we put a frog in a pot of hot water. Obviously the frog would jump and escape immediately. However, if the water was at room temperature first, the frog would certainly not panic. At this point the temperature can be increased very gradually. The frog would adapt because he would not feel the change. The heat would come very slowly. Well, that way we would have frog soup very soon and the frog wouldn’t even notice it. He would also die with a smile and think he was going to a sauna.