WATCH: Former ConsenSys Fintech Lead Says Facebook Will Rule Crypto Payments

Juan Llanos sees Facebook's rise in the payments space as nearly inevitable. So how can startups compete? He has some ideas.

Jul 18, 2019 at 7:45 a.m. UTC
Updated Sep 13, 2021 at 11:12 a.m. UTC

https://www.youtube.com/watch?v=dcr6IT5qPXY&t=2s

Before Libra, Juan Llanos still saw some outsiders who could have taken on the payments and remittance markets. Now, after Libra, he's not so sure.

"When Libra was announced mid-June ... the first thing that came to mind after reading the White Paper, obviously, is that the payments use case is already theirs," he said.

In this video, Llanos, a FinTech and RegTech Advisor, explores the things that Libra will potentially change. He says that Facebook has essentially sewn up the payments market for years to come and warns startups to focus on exchanging currencies and creating wallets to support other currencies.

How did it already win? Because of Facebook's horde of fiat cash - thanks to the seemingly antiquated business of selling eyeballs to advertisers - the company has already paid for all the things most payments startups have to work diligently to afford.

"If you think about Facebook before crypto, Facebook Payments was already an MSB and money services businesses are regulated by FinCEN at the federal level," he said. "They had licenses in all the States."

This head start, said Llanos, is what will allow Facebook to create "networks that allow them to move money and store money" without worrying about the rigamarole of local and federal regulation.

You can read our complete Libra coverage here and watch our CoinDesk LIVE interviews here.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
US Appeals Court Orders SEC to Bring Enforcement Actions to Jury Trials

The 5th Circuit Court of Appeals found that the targets of SEC enforcement actions had their constitutional rights violated by the use of in-house judges.

The 5th Circuit Court of Appeals found that the targets of SEC enforcement actions had their constitutional rights violated by the use of in-house judges.

2
First Mover Asia: Pine Wants to Test the Liquidity of the NFT Market; Cryptos Are Well-Red

The number of users on NFT markets is at its lowest point this year, but still higher than in 2021. The crypto lending platform sees an opportunity.

The number of users on NFT markets is at its lowest point this year, but still higher than in 2021. The crypto lending platform sees an opportunity.

3
CFTC Chair Indicates Agency Will Increase Crypto Enforcement: Report

Rostin Behnam said the agency was facing a rapidly increasing number of cases and would add resources to address crypto fraud.

Rostin Behnam said the agency was facing a rapidly increasing number of cases and would add resources to address crypto fraud.

4
LimeWire Signs Deal With Universal Music for Music NFT Licensing, Blockchain Gaming in Focus

The most valuable crypto stories for Wednesday, May 18, 2022.

The most valuable crypto stories for Wednesday, May 18, 2022.