New Jefferies Survey Shows Users In The US Unlikely To Use Facebook’s Libra Cryptocurrency
- US users are not so enthusiastic about Libra
- It may take a long time for users to embrace the digital asset
According to a recently released research conducted by the financial services company Jefferies, U.S. social media users are unlikely to use Facebook’s new virtual currency Libra. The survey included more than 600 participants and 80% of them answered that they were “unlikely” or “very unlikely” to use the digital asset released by Facebook.
Will US Individuals Purchase Libra?
During the last weeks, one of the main topics debated in the crypto space was related to the announcement made by Facebook about its own virtual currency. However, this survey conducted by Jefferies shows that 45% of users have a lack of trust in the social media giant, even when the firm is not going to have access to consumer transaction data. In addition to it, 40% of the respondents mentioned they already have a mobile payment wallet and they do not have a reason to embrace Libra.
Facebook released this digital asset as a stablecoin backed by different fiat currencies from different countries and as a way to process transactions and payments. Some individuals in countries with a lack of access to financial services could see in Libra an opportunity to use for the first time these services.
According to the report released by Jefferies, if Libra wants to succeed it would have to reach broad-based adoption. Without substantial network effects, Libra would not be replacing the current forms of cashless payments.
As per the survey, 12% of the individuals answered that they would use it to purchase goods or services, 14% would use it to send funds to friends and family and 15% mentioned that they would be using Facebook’s digital asset to perform both actions.
In general, it takes time to change consumer purchasing habits. As the report shows, just a small number of individuals have tired Android Pay or Apple Pay. This is why Jefferies suggests that there might be needed an incentive for users to move to Libra.