By 2020, all the EU banks might sign for instant payments via Facebook’s Libra cryptocurrency. “Real-time payments have been possible in the 19-country currency bloc since 2017, but only about half of the euro zone’s banks have joined the scheme that underpins these transactions, and it is mostly used for domestic payments,” reported Reuters.
And the banks might just jump into the game, as Facebook presented its Libra cryptocurrency last week as the ultimate solution for immediate cross-border payments that would be the next solution for the nowadays banking system’s flaws. “The clock is ticking,” stated Etienne Goosse, the director of the European Payments Council (EPC), and the authority behind the most significant European banks, such as Santander, Deutsche Bank, and Societe Generale.
As Goosse continued, the European banks have no other option than accepting Facebook’s Libra cryptocurrency as the banking system aims for faster transaction times and more stability in comparison with the standard methods.
Facebook’s Libra Cryptocurrency Prone EU Banks To Adopt Instant Payments
As per Etienne Goosse, Facebook and its Libra cryptocurrency “come with a global solution, under a global brand offering many things that the consumers seem to find wonderful. So we have no time.”
“The challenge now is to make these mechanisms interoperable,” added Piet Mallekoote, Dutch Payment Association CEO. And, yes, the Dutch government adopted instant payments, covering all their banking system, including the big ones such as ING and ABN AMRO.
In conclusion, we have to admit that Facebook’s Libra cryptocurrency might not be the one that would make the EU banks adopt instant payments. Nonetheless, Libra is an exciting project, but the banking system is not as open as many hope. In reality, Ripple and XRP (XRP) are the most appropriate solution for affordable, fast cross-border payments, so Facebook’ Libra cryptocurrency might become a failure, eventually.