Getting to know Facebook’s cryptocurrency, Libra

What should credit unions worry—and do—about this new “stable coin”?

Facebook recently released the details of the 2020 launch of its Libra cryptocurrency. The news sent ripples across all industries, but no sector felt the shockwaves more than financial services.

For years, we have been discussing the ever-increasing threats fintech poses to traditional financial services. However, this announcement marks the most universally significant threat to date. While Libra may not mark the end of the financial industry as we know it, it stands as a solemn reminder that the world is changing; with it, peoples’ expectations of banking are changing.

I hope this momentous announcement generates the urgency credit unions require to drive forward their own digital transformation and innovation. This article will strive to describe what you need to know and do about Libra.

Libra Basics

Libra is a cryptocurrency that enables users to buy things and send money with almost zero fees. Users will be able to buy merchandise online and in stores and cash out at exchange points, such as a grocery store. Libra also will integrate with WhatsApp and Facebook Messenger for simple peer-to-peer payments.

 

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