Gartner Vice President: Facebook, Wal-Mart currency may have unintended consequences for customers without bank accounts

Christophe Uzureau, vice president of Gartner, a global information technology research and analysis company, wrote a comment on Facebook and Wal-Mart's plan to issue currency: Inclusive finance is not the main goal of Facebook and Wal-Mart, and the two companies' initiatives may be Customers without bank accounts and insufficient deposits have unintended consequences. For example, for stability reasons, Libra's reserve assets are not expected to include some of the emerging market's legal currency, and in theory, users in these markets could have benefited the most from this new digital currency. Libra will also influence monetary policy, which will dilute the impact of central bank quantitative easing and increase capital outflows. This, in turn, will limit the investment funds available to support local infrastructure development. For customers who do not have bank accounts and insufficient deposits, the use of Wal-Mart tokens may make them dependent on Wal-Mart and its partners, which is good for Wal-Mart. However, for customers, this may limit their ability to work with other financial providers, build credit scores, and gain more independent financial advice. Inclusive finance is a lofty goal, and tokens are a powerful tool for providing financing channels that can drive customers to take better financial action. However, it should be skeptical that two large multinational companies should consider using such tools.