Facebook’s Libra could make stablecoins mainstream

Significance

The social media major seeks to enter the 2-trillion-dollar global payments market, but several central banks have raised regulatory and oversight concerns over this plan.

Impacts

• Strong social media regulations on data privacy protections will become even more important.
• Traditional banks will need to revise their business models as fintech expands, especially on servicing costs.
• Cybersecurity investment by cryptocurrency issuers and exchanges would need to rise dramatically to build user trust.