There has been much talk about Facebook-backed cryptocurrency Libra. Much of that has focussed on the effect in Western markets. However, Wired noted it could be a significant player in China.
In China, the vast majority of consumer commerce runs on WeChat, which has transitioned from a simple chat app to a platform for just about everything. Most of the rest of the world lacks this kind of fully integrated experience, which is hugely valuable to the platform, but also a great experience for consumers: the convenience, access and range of available services is unparalleled. Of course, the key to offering a fully-baked platform like this is scale, and Facebook has that in spades. The company has leveraged that scale time and again to launch new products to great success, even in cases where it lacks a first mover advantage. With Libra’s initial integration across WhatsApp and Messenger – and eventually, likely also Instagram – it could instantly be ready for use by billions.
Check It Out: How Facebook’s Libra Could Take on WeChat in China