Cryptocurrency, and Facebook. These two worlds are about to collide with Facebook’s recent announcement on June 18th that they’re launching their cryptocurrency payment system called Libra. Facebook currently has 2 billion users who will have access to Libra when it launches next year, and it may revolutionize the global payments system.
Competition among technology companies is prominent, and some projects are more successful than others, especially when one company tries to topple another after they’ve captured the majority of the market. An example of this would be when Google+ tried to compete with Facebook or when Amazon tried to infiltrate Google’s Android dominance.
Facebook is already ahead of the game because of the 3.9 billion people with Internet access, 2 billion of them are registered on the social network giant to connect with friends and family already. Just look at the download popularity on both iOS and Android. Facebook consumes four of the six top spots for user downloads.
Huawei, a Chinese telecommunications company that was recently blacklisted, claimed that they could make it without access to U.S. hardware vendors. They even announced that they could create their own version of Android to launch. Production was halted in its tracks when Facebook announced that their popular Facebook, Messenger, Instagram, and WhatsApp would not come pre-installed with the devices from the factory. Under founder and CEO Mark Zuckerberg, Facebook has spent years climbing to its spot at the top.
Their dominance doesn’t stop there. Since 2007, experts claim that Facebook alone has shattered 92 software competitors. The company is known for moving fast when making changes and embracing the idea of breaking things along the way.
With Facebook’s current track record, it comes as no surprise that when Libra launches in the first half of 2020, it’s anticipated to come in with a bang. The new payment system exclusively for Facebook expands the social media company into an entire ecosystem that users can dive into.
Libra will be more stable than cryptocurrencies such as BitCoin since it’s backed by actual currency. Users will also need to show a photo ID to purchase to cut down on fraud or speculators. Libra Association will manage the currency and is overseen by big-name companies such as Mastercard and Visa.
The writing is on the wall. Facebook will continue to dominate in parts or as a whole across all of its brands. The only question is which direction the company will take next.