SWIFT Rep Calls Crypto Useless Because Of Volatility But Facebook-led Libra Could Disrupt Payments

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has recently talked about cryptocurrencies. According to the organization, cryptocurrencies are useless because they are too unstable.

SWIFT representatives claimed that the value of Bitcoin and other cryptos goes down like a yoyo, which makes it untrustworthy. They believe that even if some crypto companies can make a more stable investment, it is because they offer a basket of currencies.

The members of the group also affirmed that they do not feel threatened by cryptos, but they are fairly aware of their issues. For instance, they recognize that SWIFT payments can take a lot of time.

However, despite being aware of all these issues with efficiency, the group does not feel threatened by SWIFT. Even solutions such as Ripple’s xRapid, which basically can do the same that SWIFT does now, is not recognized as a threat, at least publicly.

Curiously, the main rival that was actually recognized by SWIFT is Libra, the new stablecoin created by Facebook. The new crypto-like currency will be used on WhatsApp, Facebook Messenger and Instagram and it will reach the 2.7 billion user base of Facebook if the project is approved in the whole world.

Despite these concerns, however, SWIFT believes that the impact of the new Libra initiative can be limited. Facebook is facing a lot of scrutiny around its plans and the regulators do not seem very eager to approve its new token, so this might mean that the market may not be so affected if some countries decide not to accept the new token.

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Author: Gabriel Machado

Facebook Will Look to Become the Renowned Mobile Payments Leader as Monzo Looks to Rival FB

Facebook Will Look to Become the Renowned Mobile Payments Leader as Monzo Looks to Rival FB

In a society where convenience is overly valued, mobile payments providers are greatly appreciated. We have Apple, who has been exposing their wallet, and there’s PayPal who seems to be working on their end to bring convenience as well.

Another established market in this respective industry is that of the Chinese, as tech firms like Tencent and Alibaba have gained popularity from many. Clearly, every country wants in on competition, while ensuring that they have their respective competitive advantage.

In a recent post shared by news outlet, Decrypt, social media platform, Facebook’s current goals of launching a potential cryptocurrency and serving within the mobile payments’ industry has been expounded upon.

As per the claims made, it will be a bumpy ride for Facebook considering the fact that their reputation as a whole has downgraded. In addition, the news outlet believes that current competition, i.e. payments provider, Monzo, could indirectly enforce hindrances for Facebook.

Currently, Facebook is planning to launch a stablecoin either dubbed “Libra Coin” or “Global Coin” reports the news outlet. Since they’ve acquired WhatsApp, the instant messaging app will serve as the exchange in which users can send and receive cryptocurrencies.

What competitive advantage does Monzo have over Facebook? As obvious as this may be, Monzo was not caught for using users’ private data like Facebook has for advertisement purposes. Decrypt referenced Monzo’s CEO, Tom Blomfield, who previously shared the support they’ve garnered from 1.5 million users was not through advertisement.

Another reason why many prefer Monzo is due their openness to get the people involved, which supposedly both banks and Facebook have been attracted to as well. It was noted that the name Monzo was chosen by customers, who also were given the opportunity to express ideas for possible features.

Such an approach has taken Monzo relatively high up the ladder, giving them the bragging rights as the British Bank’s 2019 Best Banking App.

What do you know make of Facebook’s entry into the cryptosphere and payments industry? Do you think their userbase is enough of a factor for them to succeed? Or will they struggle due to the fact that people might be more doubtful given possible privacy concerns? Share away!

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Author: Nirmala Velupillai