Your clients are going to start asking you about crypto more often. Be prepared. They are going to ask you about Facebook’s new crypto initiative, Libra, first, then Bitcoin and any other crypto names their kids have told them about.
While that’s today’s headline – “Facebook and Crypto” – there is a much larger narrative here. Robo-advisors were just the beginning. Facebook just laid out a roadmap into the how’s and why’s of disinter-mediating traditional banking. PayPal, Venmo, Square and the Cash App have been pushing the masses this way already, but Facebook is ultimately coming for Citigroup. Seriously.
With partners like Visa, MasterCard, Uber (which isn’t just a ride-sharing app, btw), Lyft, eBay and a host of others – bankers across the globe are convening meetings as we speak. And yes, across the globe, not just the USA, as Libra is a global token meant to handle transactions everywhere.
This is officially Silicon Valley’s first attempt at the holy grail – money. That’s all that’s left to disrupt. Money. Banks. The Federal Reserve and other government institutions huddled around their currency printing presses. Money.
And who’s next? Is it far fetched that Amazon issues its own global coin? Talk about a layup! And is there a plausible scenario where a consortium of Goldman Sachs, JP Morgan (already announced the creation of their own coin), Bank of America, Credit Suisse and others create a collaborated ‘bank coin’ to be universally used amongst Tier 1 global banking institutions? To effectively blunt the banking moves of Silicon Valley? Yes, yes it’s entirely plausible.
Your clients are going to have questions, are you ready with answers?