Facebook’s jump into cryptocurrencies is another nail in the coffin for traditional banks, according to the CEO of one of the world’s largest independent financial advisory organisations.
Nigel Green, the founder and chief executive of deVere Group, believes Libra – launched by the social media giant’s subsidiary ‘Calibra’ on Tuesday – could deliver the tipping point towards the end of traditional banking.
“Facebook’s launch into cryptocurrencies tells us two things,” he told Coin Rivet today.
“First, the role of traditional banks will decline at a quicker rate than many had previously predicted.
“Facebook’s Libra cryptocurrency will be able to transact across traditional payment rails. They have partnered with PayPal, Mastercard, Visa, and Stripe, amongst others, to fuel merchant acceptance of the digital currency.
“If you have cryptocurrency on these payment methods, the purpose of and use for traditional banks will surely shrink.
“Cryptocurrencies and fintech solutions are already taking business away from banks. They are filling a gap left by the traditional way of doing things as the world speeds up and becomes increasingly globalised and digitalised.
“The jump into cryptocurrencies – which are the future of money – by Facebook, which already has 2.7 billion users, can really only be seen as another nail in the coffin for banks.”
Mr Green also believes Libra will open the floodgates to mass adoption of cryptocurrency and provide a better access into it for people who are currently unfamiliar with digital finance.
“Second, tech giants entering the cryptocurrency sector indicates that digital money, as a concept, is fully mainstream and inevitably the way the world is going,” he explained.
“This is something we have been arguing for a long time now – despite protestations from financial traditionalists.
“Where Facebook leads, others will inevitably follow, and this will quicken the pace of mass adoption of cryptocurrencies.
“This is a major development in the crypto-verse and it is surely just the beginning. This is set to revolutionise how people access, manage, and use money across the world, and it will positively disturb the wider banking sector. Banking as we have known it until now is coming to an end.”