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.


Disclaimer Read More

The leader in blockchain news, 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.

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.