Cryptocurrencies take financial access to the unbanked

Subject

Cryptocurrencies and financial access.

Significance

An important stated aim of Facebook’ decision to launch its Libra stablecoin is to bring financial services to those lacking access worldwide. Facebook would not have the market for cryptocurrencies-based financial services to itself: several projects are underway.

Impacts

• An outright ban of cryptocurrencies by individual governments is unlikely to work absent global regulation.
• This is unlikely due to the strong support cryptocurrencies currently enjoy in some countries.
• Many central banks (plus merchant and retail banks) are proposing tokens of their own; these will bolster Facebook’s lobbying.