Facebook is trying to create it’s own currency called Libra.
Libra has several meanings. In ancient Rome, it was a unit of weight, and would play a role in the pound being eventually created.
In the zodiac calendar however, Libra is often associated with balance.
And I believe that is what the new currency can achieve, more so than being just a unit of measurement.
If Facebook’s ambitious plan works, then all the people who do not have access to a bank account, but have a mobile phone, will be able to trade and work. More people will be able to earn money and survive.
It will also make it much, much easier to buy online without having to use credit cards or other financial intermediaries. It will reduce the hassle we face.
But there is a much bigger reason I believe Libra is good for the world and will move us forward.
For a long time, economists and financial analysts have been discussing the benefits of introducing one global currency.
Supporters of Bitcoins had argued that Bitcoin would be the one to do it. But as we have seen, it is far too unpredictable. The limited amount of Bitcoin available, makes it more of a speculative investment similar to extreme gambling. Hardly what can bring balance to the world.
Libra on the other hand, has potential. Initial impressions make it out to be more stable than Bitcoin. It doesn’t seem to have the flaws that plagued Bitcoin.
It is still early days, and we do not know enough about Libra to draw any solid conclusions yet. There are still questions.
Despite this, I personally hope it can become the dollar of the world. Facebook, with it’s 2.3 billion monthly users, is perfectly poised to launch a global currency.
If enough people use this, it can replace/eliminate all the other currencies in the world. I can imagine a future where people in different countries use Libra. And a loaf of bread or certain number of hours worked in the same occupation, can get paid the same amount in this currency across different countries. This can bring more equality to the world.
There are also plenty of hard times and financial instabilities that occur as a result of fluctuating foreign exchange rates. When the dollar value of a particular country drops, it becomes more expensive for residents of that country to purchase much needed goods. When inflation runs rampant, there will be people carrying baskets of money to trade for a loaf of bread. A global currency, if done correctly, may have the potential to rescue people from this by preventing it from ever happening.
If a global currency is introduced, it will also significantly reduce outsourcing. It will not be cheaper to hire someone from overseas if everyone across the world uses the same currency.
There are many who believe outsourcing is good. I personally do not, as I believe it is exploiting the poor.
The only potential negative of Libra, is actually a positive from a business perspective for Facebook. Which is that it will make Facebook the permanent social media of the world. As without Facebook, you won’t be able to use Libra.
I read an article recently on how less people wanted to use Facebook because of all the ads being run, and the Cambridge data scandal. That article claimed now would be the perfect time for another social media company to try and step up and replace Facebook, and people wanted to leave the social media behemoth.
But if this move by Facebook works, nobody will be leaving. From a business perspective, this is a brilliant strategy.
I have to give Zuckerberg credit, he is a genius who will be remembered in history, possibly in the same way we remember the ancient Romans. He created the first truly global social media used by enough people to connect the world. And now he might succeed in creating the first global currency. And he is only 35 years old!!!
Whether people like him or hate him, it’s hard not to respect his p̶l̶a̶n̶s̶ ̶f̶o̶r̶ ̶w̶o̶r̶l̶d̶ ̶d̶o̶m̶i̶n̶a̶t̶i̶o̶̶n intelligence.
But for me personally, I don’t mind Facebook remaining the number one social media in the world, in return for us having a stable global currency that can bring equality and balance.
There is still a lot we do not know about Libra. It was only four hours ago that it was announced, and we will no doubt learn more as time goes on.
I for one, am optimistic and hopeful.
Zuckerberg may have big visions to unite the world around Facebook. But I am happy for him to do so, if it can bring balance, or Libra, to our global economy.
Article originally written on The Startup @ Medium by: David Nerehtur
