The public perception of Facebook’s digital currency project remains all over the place. Despite a lot of initial excitement regarding Libra, it remains to be seen how well the project will fare when everything is said and done. While there may be some big hurdles ahead, there are a few key reasons as to why this currency could become a major contender.
Appealing to the Mainstream
It is rather apparent there are still a lot of reasons as to why Facebook’s Libra could genuinely fail before it even gets off the ground. That is only normal at this stage, since a lot of questions remain unanswered. However, the social media giant is headed down an interesting path, primarily because they want to bring digital money to billions of people all over the world.
In terms of targeting mainstream consumers, it is evident that Facebook’s project could very well succeed where Bitcoin and other major cryptocurrencies have fallen short. Since this new currency will be introduced to Facebook users directly without jumping through several external hoops, it is possible this venture will prove far more successful than the now defunct Facebook Credits. Only time will tell if consumers will take kindly to this particular form of money, though.
User Friendliness is a Boon
Most people on this planet have grown accustomed to a certain degree of convenience when it comes to dealing with finances. The use of bank accounts has trumped stashing cash at home. Cashless payments are taking over in most Western regions, as cash usage has been on the decline for some time now. Libra appears to be a logical extension of this trend, as it is digital money to be used in this era of digitization and online connectivity. One could even argue this new venture comes at a perfect time to test the waters in this regard.
There is also the factor of how user-friendly Libra will be. When it comes to Bitcoin and other cryptocurrencies, there is a barrier to entry for novice users who might be frightened by how this ecosystem works. Facebook’s project requires very little brain cell use, as it seems to ensure convenience and user-friendliness are the main priorities. As such, it seems this digital currency has a leg up over decentralized cryptocurrencies. At the same time, not being in control over one’s finance is not necessarily something everyone will appreciate either.
Major Partners Hint at Future Use Cases
One of the bigger pieces of news regarding this project is how there are numerous major players getting in on the action. Libra has received support from the likes of Spotify, eBay, Uber, Visa, and PayPal. This seems to indicate the currency will make its way to a lot of different platforms and services in the future, although no official timeline for integration exists at this time.
However, it seems this is not a project which will be limited to Facebook’s ecosystem alone. That ecosystem also spans Instagram and WhatsApp, among a few other services. Assuming everything will play out as advertised at this stage, there is nothing preventing this digital currency from becoming a major method of payment on the internet. There are still some questions as to how one can “cash out” this money, however, as purchasing goods and services should not be the end goal for this digital currency.