Libra Is A Threat To Wechat and Alipay
October 24, 2019 11:11 pm
Tencent, the payment service’s parent company recently admitted in a recent blockchain whitepaper that Libra stablecoin would be a serious threat to WeChat Pay. According to the report by EjinSight, in the document, Tencent acknowledges that international expansion of Chinese mobile payments offerings would be threatened if Libra launched.
“It’s a safe play resorting to the strategy of ‘encircling the cities from the rural areas,’ in which Libra coin could quickly enter markets with underdeveloped financial infrastructure, especially those that do not have a credible local currency of their own before it sets its foot in developed markets.”
Tencent added that if Libra is launched, there is no doubt that Libra will have a significant impact on the payments industry and finance in general. However, the firm did not describe how it plans to react if Facebook’s stablecoin will be launched.
According to Tencent, tokenization can reduce the costs of financing, research, and development, governance and user base expansion, as well as force fintech to innovate. However, the company also believes that a well-developed regulatory framework is needed to ensure a healthy market.