Can Facebook’s Libra Change the Sentiment of Younger Generation Towards Crypto Assets?
According to a survey conducted by Cint a majority of the Gen Z does not want anything to do with cryptocurrency. While it may sound astonishing but that is the reality as per the survey conducted on 1,884 young Americans.
The firm behind the analysis is also well reputed for its various research and exchange of data. The Moto of the analysis was to understand how Gen Z views the most talked topic in recent years.
The study reveals that 53% of the total number of people who were part of the survey and under the age of 25 do not want anything to do with the cryptocurrency, while 17% of those who were interviewed maintained that they are not going to make any investment in the coming six months. So the study is a clear indication that 70% of the interviewed Gen Z do not like crypto while only 30% have some form of interest.
However, the recent survey is a clear contrast to the one which suggester 55% of the Millenials are more inclined towards crypto investment than any other form of modern day asset.
Can Facebook's Libra Change the Gen Z Sentiments
Facebook has got the Gen Z addicted to its social media platform and thus many believe that the launch of its stable coin Libra next year could change the way how Gen Z perceive cryptocurrencies.
The most influencing factor in doing so would be the tons of categorised data Facebook has under its possession. Facebook has a multiple generations hooked to their ecosystem which comprises of Facebook, WhatsApp and Instragam. The interoperability among these three itself could be a game changer as people would be able to send money across all three platforms.
However Facebook Libra has to get past a ton of obstacles and scrutiny before it could do something at that scale. Currently, the Libra stable coin is not in good books of several regulators and central banks around the globe, mainly because of its financial structure and working model.
Libra would be backed by a number of Fiat currencies and government security, which is a clever way of avoiding compliance as no single regulatory body have any saying due to its multi Fiat support. Bank of Japan has even accused Libra of trying to piggy ride on regulatory reforms and believe it would be unfair for other digital assets which has to go under rigorous watch it regulatory bodies.
If with some miracle Libra is able to surpass all these obstacles and become the digital money of the internet, people using Facebook, WhatsApp and Instagram would send money as easily as sending messages. Facebook has become an integral part of a quarter of world population as it accounts for 1.5 billion daily users. If we look at the stats in terms of age bracket, 88% of the population between the ages of 13 and 17 years of age and 84% of the population between the ages of 18 and 29 years are regular Facebook users.
The same holds true for Instagram and WhatsApp as well, where 72% of users are under the age of 17 and 64% of the population between the ages of 18 and 29 years use Instagram on a regular basis. On the other hand WhatsApp accounts for 38% of its users are between the age of 18 and 24.
The large section of the population being on Facebook's ecosystem would make it extremely easy for the social media giants to simply put a crypto wallet on these apps, and users can simply use it as they do for chatting or sharing media files. It would definitely change the way the Gen Z currently perceive crypto space.
This could be another revolution that Facebook becomes a pivotal point of, people would start using crypto with a curiosity and with enough users it would become a necessity as has been the case with the use of Facebook.
Chris Hughes rightly summarizes how Libra is both an interesting and fearful take on the world's financial network. He says,
“Libra has a long way to go before being successful, but in theory, it's brilliant and frightening. At the start of the week, I thought the problem would be that it would reinforce Facebook's corporate power. Now, a few days out, I think the problem is different and bigger: a new layer of monetary control between central banks and individuals, mediated by corporations”
He went on to add,
“What Libra backers are calling “decentralisation” is in truth a shift of power away from developing world central banks and toward multinational corporations and the central banks of the largest economies.”
“If #Libra is successful, the problem will be bigger than more power for Facebook. We'll have to answer whether we want a global currency managed by (mostly) for-profit, private companies or public ones.”
However all these are just speculation especially until the actual launch of the token as per the initial plans. It is also interesting to note that it is not the first attempt from Facebook to introduce a form of money transactions in their ecosystem.
Easier they had introduced messenger payments which failed to take pace and finally had to be shut down. Banking and Social media are two totally different ball game, and given the scrutiny it has faced for poor management of user private data along with their Libra working model, it would be one daunting task if they succed at it.