After diving deep into Facebook’s Libra project, Binance Research discovered that the proposed concept could change the face of the payments industry.
23 April, 2020 | AtoZ Markets – Binance Research studied into Libra’s latest white paper, surfacing with a long report, claiming that the asset offered by Facebook could significantly change the world of payments. The crypto industry could benefit considerably from the adoption of Libra coins by Facebook.
Will Libra Live Up To Its Initial Ambitions?
In its analysis titled “Will Libra Live Up To Its Initial Ambitions?”, Binance Research shares a positive view of the long-term future of Libra. The report claims that Libra may become widely used with products directly cited in Libra. We could imagine new stable coins, both fiat-backed and crypto-backed, reproducing its peg on multiple networks without permission like Ethereum “.
“The global payment system envisioned by Libra could do to the payments sector what SpaceX has done to the space industry. Libra may shake the foundations of a well-established sector with high entry barriers,” said the report, adding:
“The simple benefit of issuing widely available programmable money would already lead to multiple efficiencies.”
After the publication of its first white paper in June 2019, regulatory bodies quickly burst in, ending the project while conducting several court hearings. Libra has made several changes to its plans, apparently by listening to regulators, according to the Binance report. In its latest white paper, Facebook’s Libra asset positioned as a new financial framework. “Libra aims to enable a simple global currency and a financial infrastructure that empowers millions of people,” said the white paper.
Libra could become an alternative to existing stablecoins
Besides, Binance Research sees the possibility of multiple crypto exchanges adding support for Libra Coins (LibraUSD, LibraEUR). But it is only after maturation and wider adoption of networks. If this were to happen, Libra could become an alternative to existing stablecoins, which would lead to increased competition between market participants.
However, it would prove massively beneficial to the rest of the crypto industry, as adoption would grow. Libra may open up access to third parties and maintains a user-friendly interface. “The benefits for financial inclusion could be significant, and ultimately reshape the global payments industry,” say the researchers.
Binance Research indicates that Libra could radically change the payments industry, adding faster turnaround times and overall transaction speeds. Besides, “there are very few payment systems. Most of them are operated by a central bank and regional in scope only,” said the report. As a global operation, Libra has greater scope and therefore, greater potential.
Think we missed something? Let us know in the comment section below.