Facebook currency ‘clearly a threat’ to big banks, finance sector

The Libra consortium also needs to give the currency’s ecosystem the credibility to encourage businesses to share customers, data and payments in a way that benefits everyone.

“If it’s successful, it’s not just going to have the traditional qualities of a corporate currency like Westfield dollars or, Qantas Frequent Flyer points, it’s really a governance play,” said Mr Tan.

Even if it is successful, Facebook’s currency model could provide new opportunities for the banks to emulate, according to Mr Healy.

Banks are also looking at payment solutions using blockchain, and if Facebook developed a “compelling proposition,” banks could consider replicating it.

“Like all fintech disrupters, they’re all potential threats, but they’re also opportunities for us to learn, and if some of these emerge as real threats we can learn from them, develop our own capabilities and respond appropriately.”

This content was originally published here.

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