The widespread paradigm of “neobanks vs. banks” doesn’t take the elephant in the room into account: Apple, Facebook, Google, and Amazon realize that their reach is useful not only for digital services distribution but also for payment and banking. This might force traditional banks into infrastructure providers and neobanks into bankruptcy.
Facebook has already started dipping their toes into the water with the announcement of the Libra digital currency. This week, they rebranded their yet to be launched digital wallet from Calibra to Novi
. Facebook says its mission for Novi and Libra remains the same: to make sending money as easy as “sending a message.” So far, they have had a lot of bumps in the road with regulatory concerns and new plans for their currency. Maybe creating multiple new cryptocurrencies isn’t the best way to make it easier for consumers to transfer money internationally? 🤔
I have a slight suspicion that project is driven by internal politics and the desire to use a cool new tech for… something… Benedict Evans on Libra