Business Insider predicts that Libra will not be officially released in 2020, and China will release digital currency
Recently, Business Insider released 30 predictions for the technology industry in 2020, including five predictions for the financial technology industry.
From finance, retail, healthcare to the content industry, the digital wave is sweeping across all industries, and no industry can survive away from digitalization.
The United States business research organization Business Insider (hereinafter referred to as "BI") proposed that 2020 will be the first year of the digital transformation.
In the recently released "30 Big Tech Predictions for 2020", BI put forward forward-looking forecasts for six major areas: banking, communications technology, digital media, e-commerce payments, fintech and digital healthcare. .
Among them, for the financial technology industry, BI has proposed five major trend predictions. Titanium Media (WeChat ID: taimeiti) is compiled as follows (this article is bilingual in Chinese and English):
2019 marked a dynamic and eventful year for the fintech industry, with big tech players pushing deeper into financial services, corporate giants and governments alike turning their focus to digital currencies, and the industry shifting its attention from fintechs' user growth numbers to sustainability.
2019 is a dynamic and significant year for the fintech industry. Major technology giants have gone deep into the financial services sector. Companies and governments have shifted their focus to digital currencies. The focus of the entire industry has gradually shifted from user growth to Persistent.
Further, both incumbents and fintechs have been exploring new business models to diversify their revenue streams, players like Robinhood and Freetrade have been disrupting the trading industry by transforming the rules of the game, and emerging markets — such as Latin America — have come to the fore as vibrant fintech ecosystems.
In addition, people inside and outside the industry are exploring new business models to diversify their revenue sources. Companies such as Robinhood and Freetrade have disrupted the trade industry by changing the rules of the game. Emerging markets such as Latin America have become a vibrant fintech ecosystem .
Based on these developments, our proprietary research, and the trends we've seen intensifying as we head into the new year, here are our top five predictions for fintech in 2020.
Based on these developments, our proprietary research, and the growing trends we see in the new year, here are our five predictions for fintech in 2020.
1. Libra won't launch in 2020, but China will launch a digital currency and push other jurisdictions to follow suit — here's why:
Libra will not be listed in 2020, but China will release digital currency, a move that will promote issuance plans in other countries for the following reasons:
Facebook remains confident it can deliver on Libra, but since the project has been plagued by criticism, we don't think it will launch in 2020. In June, Facebook announced its plan to launch its cryptocurrency, Libra, with 28 partners in H1 2020 . Many regulatory bodies and governments have scrutinized the project since then — Mark Zuckerberg had to testify in front of Congress amid concerns that Libra could facilitate money laundering, endanger users' assets, and give Facebook more power, for instance.
There is still confidence in the release of Libra, but since the project has been criticized, we don't think it will be launched in 2020. In June 2019, Facebook announced plans to launch the cryptocurrency Libra with 28 partners in the first half of 2020. Since then, many regulators and governments have begun scrutinizing the project-they worry that Libra could fuel money laundering, endanger user assets and give Facebook more power, which has forced Mark Zuckerberg to hold a hearing before Congress Will explain that all this will not happen.
The loss of support from some of its key members, including Visa, Mastercard, and PayPal, has also put a damper on the project. But Facebook has already logged over 51,000 test transactions in November and insists it can resolve government worries and launch within H2 2020.
Earlier, some core members of the Libra Alliance, including Visa, Mastercard and PayPal, stated that they no longer support this project, which has also hindered it. But Facebook had recorded more than 51,000 test transactions in November and insisted it could address government concerns and launch in the second half of 2020.
This confidence is likely fueled by a strong track record of getting its way, including with the acquisitions of Instagram and WhatsApp, despite regulatory concerns. However, we think this time will be different given the slew of voices globally that have raised concerns and mounting antitrust scrutiny against all big tech giants — if at all, Libra won't launch in the next 12 months.
Perhaps the benefits, including the acquisition of Instagram and WhatsApp, gave Facebook confidence and eased its regulatory concerns. However, we think this time will be different, as more and more people around the world are beginning to support antitrust reviews of all large tech giants, even if Libra will not go public in the next 12 months.
Meanwhile, China will launch its own crypto in 2020, leading a number of other countries to ramp up similar efforts. Although Facebook's crypto plans are looking bleak, China's central bank has gotten close to launching its own crypto: It began researching the venture in 2018 , and it was reported in August that the crypto was "close to being out."
At the same time, China will launch its own encryption technology in 2020 and lead some other countries to accelerate this process. Although Facebook's encryption plan looks bleak, the People's Bank of China is close to launching its own encryption scheme: it started researching the business in 2018, and in August this year it was reported that encryption technology was "coming soon."
We expect this will happen in 2020, as it has already started testing the digital currency in two cities. This will push an avalanche of other major authorities, particularly the Bank of England and central banks in the EU — with Sweden being a current forerunner — to take steps in that direction to avoid falling behind China.
We expect this to happen in 2020, as two cities have already started testing digital currencies. This will prompt relevant departments in other countries, especially the Bank of England and the European Central Bank (Sweden is the current pioneer) to take measures to avoid falling behind China.