Page 17 - EQ Mag-issue 5

CRYPTOCURRENCY RESOURCE (Cont’d)

money to other users or to businesses through consumer trust. It’s hard to trust anyone online with
Facebook, Messenger, or WhatsApp. To that extent, your money in 2019. It’s even harder when your option
Calibra is competitive with peer-to-peer services like is Facebook.
Venmo, except it’s based around a virtual currency
rather than a government-backed one. The privacy breaches. The data scandals. The
apologies. The pledges to do better. All of these public
But much of the focus for both Libra and Calibra seems missteps are factors consumers will surely consider
centered on non-US users, particularly those from when trying to decide where to store their money.
countries without reliable access to consumer banks.
The central appeal of Facebook’s push is that mobile Facebook basically acknowledged as much to Recode
access to the Internet has in fact outstripped physical — although it pointed out that trust in Facebook varies
access to banks, which positions Facebook to offer around the world. But more to the point, it mentioned
financial services to unbanked people in the that people can use the Libra currency without using a
developing world. Facebook product like Calibra.

For instance, during a press call about Libra, Facebook “If they would rather put their trust elsewhere, they
executives brought up remittances several times as a can use other digital wallets,” Weil said, insisting that
perfect use case for Calibra. Rather than working it will “take time to build trust,” and that Facebook
through a bank or a money wiring service, Facebook expects skeptics in the short term. “There will be
imagines users calling on Calibra to send virtual cash people that don’t believe we feel strongly about that.”
instantly, with no fees, to overseas family members.
Then recipients can Facebook also took pains
either leave that money to say that it will not be
in their wallet or convert using any of the financial
i t i n t o t h e i r o w n data it will collect on
government’s currency consumers to target them
— where Facebook with advertisements.
i m a g i n e s m o s t Facebook seems aware of
transactions will still consumers’ perceptions.
occur. “This is people’s money,
a n d w e t a k e t h a t
Facebook is not the only seriously,” Weil said. “A
tech company to realize lot of people assume this is
that its distribution about improving ad
platform makes it a targeting — and it’s not.”
possible disruptor of the
world’s lacking financial But then again, Facebook
infrastructure. Apple Pay i s n o t i n t h i s f o r
allows people to pay for philanthropic services for
goods with their phones, the unbanked. Weil said
and the company’s new credit card — developed this could presage an expansion by Facebook into
alongside Goldman Sachs — is a new escalation in the other financial services that could generate revenue
competition between traditional finance and Apple. for the company — such as providing credit to people
or businesses. He also floated the idea that more
Facebook executives told Recode that they didn’t people or more businesses could flock to Facebook to
consider Apple’s ambitions to be competitive, with take advantage of its cryptocurrency offering,
Kevin Weil, the head of product for Calibra, saying bolstering its core digital advertising business.
Facebook would “welcome” Apple to join the Libra
Association. But Facebook still noted that Apple’s Some stock analysts are going so far as to predict this
products levy fees and require users to be banked, to be “one of the most important initiatives in the
which Libra and Calibra do not. There are also many history of the company.”
more people with Facebook accounts than Apple
devices. Facebook is expected to launch the new currency in
the first half of next year.
Will people use it?

What Apple has in spades that Facebook does not is

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