The most important event in the crypto world in 2019 is Facebook's announcement of the controversial Libra project. Libra is not the only project designed to disrupt the payment industry on the verge of change.
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According to the latest statistics, by 2020, remittances to low- and middle-income countries are expected to reach US $ 574 billion, and by 2021, this number will reach US $ 597 billion. But for many, payment has always been an inefficient and costly industry. High costs coupled with strict laws continue to be obstacles to the growth of the payments industry.
Dante Disparte, Libra's vice chairman and director of policy and communications, said the existing payment system was like a "walled garden." He said that 230 million economic immigrants are people who empower their own GDP, and their contributions are greater than P2P payments, foreign direct investment or official government assistance and development assistance, and there is currently no way to achieve it cheaper and more efficiently at this point.
In a recent interview, Deepat claimed that there was not much competition in the remittance channels and that the existing remittance channels were "either a big monopolist or a duopoly operator" controlling these remittance channels. Speaking of Libra's prospects for developing this field, he said:
"If we provide digital wallet providers with the opportunity to interoperate, it will be a major game change for the world. To do this, of course, means that you have to go through the process we are going through now-building an affordable The volatile and rising governance model of any organization association must also establish a model that can achieve regulatory standards for consumer protection. "
Due to the lack of infrastructure, the dialogue between the crypto industry and the payment industry has been slow. But if the Libra project is approved by regulators, it will face challenges from very experienced players in the field-the blockchain company Ripple and the Global Interbank Financial Telecommunications Association (Swift).
Libra should complete three tasks before its official launch
Libra did succeed in generating a strong response in the U.S. Congress Hall and initiating the industry's long-awaited conversation. But through Facebook's dialogue with U.S. regulators, it is not difficult to see that its digital currency Libra may not be launched in the 2020 US election year. Deepat said:
"Because of the huge potential of the Libra project, its power to change the scope of the dialogue between regulators and the payment sector is increasing."
Deepat revealed in an interview that before Libra was launched, three things needed to be done. He said:
"Obviously, our project has been going on for 6 months. Like many blockchain projects, it also started with a humble white paper. The white paper outlines certain things that must happen, they are very important, Must happen synchronously. "
He further added:
"First, we must build the governance structure of the Libra Association, ensure its independence, and operate based on it to build an intergenerational payment system that can support billions of people at the edge of today's payment network."
According to the executive, the second job of the Libra Association builds a strong and resilient technical layer, and the third job is to overcome regulatory and political obstacles.
Deepat believes that if the above three "work" are completed, it will bring more clarity and certainty in the legalization of digital assets. Speaking of other organizations joining the Libra project, the executive said:
"In addition to the Libra Association, we need to have 100 other organizations as a prerequisite for Libra's launch. Hundreds of organizations will have 100 nodes on the Libra blockchain. Therefore, by reasoning, we will definitely continue to develop the Libra Association. prospect."
The head of the Libra project, David Marcus, previously revealed that nearly 1,600 institutions around the world have expressed interest in becoming members of the project to form a corporate alliance to oversee the project.