After a deep dive into Facebook’s Libra project, Binance Research found the proposed concept could change the face of the payment sector.
Binance Research dove into Libra’s most recent whitepaper, surfacing with a lenghty report, in part claiming Facebook’s proposed asset could significantly alter the payments world.
“Libra’s envisioned global payment system could do to the payment industry what SpaceX did to the space industry: shake the foundations of a well-established sector with high entry barriers,” the April 22 report said, adding:
“The mere advantage of issuing widely-available programmable money would already initiate manifold efficiency gains.”
Libra’s outlook after a year of regulatory pushback
After releasing its initial whitepaper in June 2019, regulating bodies quickly flooded in, putting a halt on the project while conducting a number of court hearings. Libra made several changes to its plans, apparently listening to regulators, the Binance report said.
In its latest whitepaper, Facebook’s Libra asset positions itself as a new financial framework. “Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people,” the whitepaper reads.
Citing Libra’s most recent whitepaper, Binance Research pointed out three staples of the endeavor — Libra’s blockchain, Libra Coins (stablecoins with backing stored at the Libra Reserve), and an independent governing body known as the Libra Association.
Shaking up the system like SpaceX
Elon Musk’s SpaceX company greatly altered the space sector by improving speed and turnaround time for rocket trips, a CNBC article detailed.
The comparison proposed by Binance Research indicates that Libra may dramatically change the payments sector, adding faster turnaround times and overall transaction speeds.
Additionally, “there are very few payment systems, and most of them are operated by a central bank and of only regional scope,” the report said, leading into its SpaceX comparison note. As a global operation, Libra holds greater reach and therefore potential.
Libra still faces regulatory pushback, however, as Texas congresswoman, Sylvia Garcia, wants to see the asset deemed a security.
Cointelegraph reached out to Binance for additional details, but received no response as of press time. This article will be updated accordingly should a response come in.