Binance Research Compares Libra with SpaceX

News / 28.04.2020

Facebook’s Libra is still facing barriers as it is trying to come up with a new international payment system and financial infrastructure.

Recently, Binance Research released a report which noted that the cryptocurrency project may turn things around in the payments industry similar to the transformation within the space travel industry by SpaceX.

Last year, Facebook said it was planning to launch Libra, a digital currency to be managed by the Libra Association, a Swiss-based consortium of independent members. The design of the platform is such that numerous individuals worldwide will be able to carry out financial transactions online. However, regulatory troubles have been opposing the project.

According to Binance report, Elon Musk’s spaceflight firm also faced some challenges just like Facebook’s Libra. Musk encountered high-entry challenges while trying to enter into an industry dominated by public market players. However, SpaceX was able to offer new and cost-saving technologies that brought transformation to space travel.

Similarly, the Libra project is trying to introduce an international payment system with the potential to bring changes to the payment industry by dealing with the central banks’ limitations.

The report noted the importance of noting the existence of a few payment systems which are majorly operated by a central bank and their scope is within a region. Libra could rearrange a well-established sector with high entry hurdles just like SpaceX.

According to an individual working with Binance, new online money transfer services like Transferwise provide certain payment innovations but lack some Libra’s potential offer.

When it comes to financial inclusion, the report noted the possibility of Libra to affect it if it paves the way for third parties’ accessibility and adopts a user-friendly interface.

Featured image courtesy of Shutterstock. Source: Cryptopress.

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Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.