Facebook’s Libra digital currency may not be DOA

Unveiled to unprecedented and ongoing scrutiny and criticism, the Libra cryptocurrency and Calibra digital wallet are being written off by many — even by the CEO of Chase. But not all agree with that. When viewed as a payment innovation, some see Libra as a potent challenge to the global ambitions of China's AliPay and WeChat Pay, and even as a revenue opportunity for financial institutions that participate.

by Bill Streeter, The Financial Brand

Jamie Dimon tossed out a soundbite about Facebook’s Libra cryptocurrency venture at a conference, stating “It’s a neat idea that will never happen.”

Dimon’s zinger was just one of a series of negatives slamming the social media giant’s ambitious digital payment proposal. Within a span of about a month:

  • Seven of the most prominent early supporters of Libra, including PayPal, Visa, Mastercard, Stripe and eBay pulled out of the Libra Association, the independent nonprofit entity Facebook set up to govern the Libra currency.
  • The European Union announced plans to introduce legislation to prevent Libra from undermining the Euro.
  • France and Germany issued a joint statement for Libra to be blocked.

 

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