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Facebook’s Libra Consortium is Coming

Imagine a blockchain hub so powerful it could lead fiat down a digital currency underground.

Michael K. Spencer

As recently reported by The Wall Street Journal, Facebook’s cryptocurrency will be governed by a consortium of firms known as the Libra Association, which includes the likes of Visa, Mastercard, and PayPal.

If the Lightning Network could make many altcoins obsolete, could this powerful new group make Bitcoin’s mainstream appeal less? Or will the centralized fiat-backed stablecoin rival the anarchist decentralized original token?

After the crypto winter comes the crypto wars for mainstream adoption.

WTF is the Libra Association Consortium?

Here’s a full list of the Libra Association founding members, which Facebook is set to officially announce on Tuesday:

The Block

Such a powerful group of payment companies could centralize digital currencies for a long time to come. Much like how the Lightning Network could profit from Bitcoin, making Silicon Valley the dominant force of how blockchain transactions evolve in the real world.

  • Visa
  • Mastercard
  • Uber
  • PayPal
  • Coinbase
  • Stripe

Why aren’t we surprised?

Project Libra could hijack crypto and decentralization as we once knew them. Blockchain as a path to a token economy that could one day replace fiat transactions and currencies. Can you imagine such a world?

Next week, we’ll be living in it.

A person familiar with the situation said Facebook charged each member $10 million to manage their own node, which allows members to access and view the network. While Wall Street and Big Banks did not show interest in the consortium, they will come to regret it.

Facebook could one day disrupt J.P. Morgan Chase, Goldman Sachs and others with their own system where they become like a bank for consumers, and retailers prefer their system to the old legacy banks and financial institutions.

Don’t say I didn’t warn you.

This is a FinTech event in the making that could have long-term consequences for the fate of both cryptocurrencies and banking as we know them, death by stablecoin, if I had to say so myself.

Mark Zuckerberg? Laughing all the way to the bank as usual.

The project’s software has a long way to go until it can be used, even an early 2020 launch sounds to me a bit unrealistic.

Such data would likely be under Facebook’s control, hosted in company databases. With regulation of BigTech in the spotlight it’s really interesting timing.

Such a Consortium could appeal to brands, merchants and payment networks who rush to integrate to the leading blockchain partnerships in the world. With over 2 billion consumers, the Libra Network will definitely be among them.

Facebook is looking to have 100 members in the governing association. One consortium to rule them all. This is how corporations and financial tech can disrupt banking and how Facebook can become way too powerful, something it’s already been accused of for years.

With Microsoft, Google and Amazon “retreating to the cloud”, Facebook’s belief that it still has the consumer means the post-advertising era of Facebook might be starting on June 18th, 2019.

Facebook’s debut into the world of cryptocurrency could be just days away. But this isn’t your nephew’s crypto, this is more like BigTech disrupting banks and cryptocurrencies in one genius stroke.

Cold Fusion posted this in mid May, 2019.

The banks and blockchain startups don’t understand what Libra will be like. But as a futurist, I can sort of imagine. It’s not really that hard to imagine, is it? A new hub based on blockchain tech that keeps BigTech ahead of the game and which all of these “partners” join that ultimately destroys their own core businesses.

Libra Consortium Could Kill Banking and Transform Financial Services in a Decade

We know, because we saw before, with media, how Facebook operates.

Facebook will not do to banking what it once did to the media. Nobody will mind because Silicon Valley has a “free pass” in disruption, especially when it helps national security agencies accomplish their goals.

Libra could quickly become more powerful than Alipay, already a gigantic FinTech fusion between Alibaba and the influence of the Chinese Government globally.

Facebook’s ‘GlobalCoin’ will have its own ATMs and be integrated eventually better than ApplePay and could over time kill Bitcoin, forever.

What people don’t understand is this is the playbook of how BigTech become banks and transfer the power of capitalism from banks and financial institutions to tech companies, the battle for our wallet of the 2025 to 2035 period.

I anticipate Facebook will eat up and acquire startups such as Coinbase, Stellar, MobileCoin, Zilliqa, Harmony and many others to steal their talent and scalability ideas. J.P. Morgan, which in theory could have caught up in R&D, will essentially be out of time and many legacy banks will just be crushed by this initiative. And you said blockchain was good for nothing? You just wait.

Facebook has already acquired the blockchain startup Chainspace, with a keen eye on its proprietary consensus algorithm. Libra’s Consortium will become very powerful and it won’t be broken up, because it will rule the money of the future.

Libra is not a currency or a crypto, it’s a blockchain stablecoin Consortium that will quickly become more powerful than the banks. It will make all cryptocurrencies but Bitcoin obsolete eventually. At first, it will stimulate the token economy leading to much enthusiasm, optimism and digital transformation FinTech hype.

That’s the playbook.

If successful, Facebook could net $1 billion from the 100 companies it hopes to include in the project. Each of these nodes will also reportedly get a seat in the Libra Association as node operators, sending a representative to the consortium. Think of this like a centralized congress that controls the future of money itself.

Join or die will have new meaning in how technology disrupts banking, and we knew it would happen, many of us just thought it would be Amazon, and not Facebook who would accomplish the feat.

In May of this year, Facebook registered Libra Networks LLC in Geneva, Switzerland, where it is working on blockchain developments. In June, we’ll know a whole lot more about this mysterious consortium. It will take several years however before the prophecy in this article unfolds.

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FutureSin

Futurism articles bent on cultivating an awareness of exponential technologies while exploring the 4th industrial revolution.

Michael K. Spencer

Written by

Blockchain Mark Consultant, tech Futurist, prolific writer. LinkedIn: michaelkspencer

FutureSin

FutureSin

Futurism articles bent on cultivating an awareness of exponential technologies while exploring the 4th industrial revolution.