Facebook’s David Marcus Justifies Building A Blockchain Payments Network Vs Traditional Banking System
In a blog post published on Wednesday, Libra cofounder David Marcus tried to justify Facebook's move to, saying that it is going to be an asset to the global population as most of them lack access to modern financial services. What they aim is to provide those people with lower-cost banking services which can bring well being of those people.
Marcus brings out a clear picture of financial institutes who perform the vital work of keeping cash secure and secure for individuals and the processes in place require a lot of mediators. The inclusion of these is what makes the industry more costly. Blockchain innovation points to do the weightlifting by securing transactions and making the overall experience more satisfactory and less time and money consuming.
In comparison, Marcus adds that Libra can be used as a decentralized global form of payment that is as stable as the dollar, can be used to buy almost anything, and can support an entire range of financial products — from banking to loans to credit at a very low cost by eliminating intermediaries.
He emphasizes on building on top of existing rails and across disconnected payment networks won't minimize expenses to open up the market to more innovation nor lower the barrier of access to contemporary financial services as much as constructing a brand-new facility with an extremely steady, high quality international circulating medium supporting it.
Advantages of Blockchain Payment Networks
Marcus furthers adds that transactions on a blockchain has an improved accuracy by eliminating human involvement in verifications as the transactions are approved by a network of thousands of computers. This in turn typically reduces the cost by removing third party verification. Transactions are efficient, secure and private. Decentralization makes it harder to tamper with.
“People would benefit from more ease when they want to send and receive money, and the barrier of access to modern digital money and financial services would be greatly lowered — enabling billions to have access to these essential services and to the world’s economy,”