As COO & Managing Director, Bertrand Perez is responsible for the day-to-day operations of the Libra Association. He will participate to the first edition of the European Finance Summit, which will take place on March 5th, 2020, to discuss the latest Blockchain trends and share Libra's vision. Register now: www.europeanfinancesummit.com.
How do you explain the current trend and development of crypto-currencies?
The trend in the development of cryptocurrencies has accelerated, in no small measure because of the announcement of Libra in mid-June. Following Libra's announcement, the concept of central bank issued digital currency has gained traction around the world, as has the conversation about regulatory approaches to Fintech and Blockchain based innovations. This is particularly true for so-called stable coin projects.
Is this being done at the expense of currencies? Will they disappear?
Libra was created to complement the existing system, not replace sovereign currencies, and is digitizing existing assets and currencies through the reserve. Further, since Libra will only represent a small share of all transactions in any single economy, we expect its impact to be minimal on any one economy.
You talk about the "Internet of Money", what is it about?
If you think about the major challenge we have in payment systems, in many respects they are walled gardens. Even inside companies, payment solutions such as PayPal and Venmo both owned by Paypal, they do not work across platforms. Imagine if you had to either pay or you could not send an email from one email provider to another. So when we say an Internet for money, or an open payment system that supports low friction high security payments between people, what we mean is to tear down the walls that make global payments costly and inaccessible for billions of people. A better way of describing what we are trying to achieve is the internet of payments.
How will consumers benefit from this project and crypto-currencies in general?
Today, there is an opportunity for a widely accessible, standardized platform over which financial transactions can be sent and independently verified. The Libra Blockchain can provide this backbone, and help reduce frictions in payment channels emerging from:
• High costs
• Transmission errors and delays
• Hold up risk
• Insufficient competition and innovation due to high barriers to entry and fragmented markets
A standardized platform – like the Internet – has the possibility to create entirely new categories of products and services, expand access to currently underserved segments of the population and markets, and drastically lower prices for consumers. By enabling a simple low-cost global payments system and financial infrastructure, Libra can empower billions of people.
What are the main obstacles to the development of these new currencies today? How are you trying to meet these challenges with Libra?
The main obstacles of these types of efforts has to do with creating regulatory and stakeholder alignment. As you have seen with the announcement of Libra, there has been worldwide interest of both the enthusiastic and apprehensive variety. Ensuring that the Libra project demonstrates responsible financial innovation and regulatory oversight are not in competition, there is a clear path for this project to succeed.
What about your development in Europe?
The Association is eager to pursue its mission of building a better payment network, broadening access to essential financial services, and lowering costs for billions of people who need it the most. As an association, members are continuing the critical work with applicable regulators around the world and standing up the governance and policy structure for the Association.
Publié le 13 janvier 2020