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It is quite clear that the new Facebook currency will actually change the way we buy things, use credit cards and it might even affect real estate values in certain areas.

Facebook have been quietly gathering investments of up to 1 billion dollars to fund this secret project. Main ways Libra is supposed to be different from Bitcoin is that it is actually supposed to be a stable coin. It seems like Facebook is going to try to keep the value of Libra something close to the dollars value, or maybe pound or the Canadian dollar, or even euro.

Possible Facebook’s Influence On Credit Cards

There is an expectation that Facebook will try to get into the game of taking money away from credit card and competing with innovators like Amazon and Apple.

The big reason a lot of companies try to get into the credit card space is because credit cards are very expensive. There are a lot of fees in using them and when you take control of the payment system you can remove a lot of fees and make things cheaper to buy.

Facebook wants to take it a step further and let their actual money be accepted through Libra terminals in the stores, in the the countries. It surely might be that in the future people will see credit card terminal and then see the Facebook Libra terminal and they will choose to pay with Libra with saving 2% or 5%.

Facebook is playing smart, so instead of being in competition with companies like PayPal or Venmo, Facebook has partnered with them.

Facebook does not necessarily need to make a massive amount of money by collecting processing fees. Their main goal could be cutting out the middleman and become the processing system that everyone are using.

Possible Facebook’s Influence On Real Estate

And what about real estate? If the Libra ends up being tied to the value of euro, or dollar, or pound then the Libra would be tied to relatively inflation currencies. They do not loose their value very quickly, in fact they sort of hold it longer, unlike a lot of developing countries.

In developing countries a lot of people would probably want to earn money and then really quickly convert it to Libra coin, so it stays safe and does not loose value. This is where it might actually start hurting real estate values in certain areas.

There is a lot of foreign money that comes from China or South American countries and other parts of the world that are trying to escape higher inflation. Areas to invest in luxury or regular markets are spread out through the United States and Canada. Many areas there are seeing a lot of investment from these higher inflation countries and those people are buying real estate because they want a rental. They want to invest their money into something they believe in, because they do not believe in their own country’s money.

When Facebook will give people an opportunity to open Facebook Messenger and see their account balances, make bookings and buy right through Facebook, people might be less anxious to invest in real estate. They can invest their money in the Libra instead.

Conclusion

Facebook surely wants to take advantages from this project, but what the actual goal is we can only guess. Is it ‘killing’ real estate or credit cards? Maybe just gaining even more users? Possibilities are endless.