Facebook’s Libra Vice Chairman Claims Digital Payment To Reduce Poverty

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Facebook-backed Libra has drawn flak for regulatory functioning over its cryptocurrency. However, its vice-chairman, Dante Disparte has at present spoken about how blockchain-based technology can help to reduce poverty.

Blockchain-based payment systems can bring more than 1.7 billion people who are unbanked or underbanked into the formal economy,” he was quoted as saying by Decrypt.

Dante has not mentioned about the currently existing cryptocurrencies which is currently existing such as Bitcoin or Ethereum but he has emphasised his focus on Central Bank Digital Currencies (CBDCs) along with stablecoins like Libra.

Dante also said that these digital currencies might reduce the over reliance that is currently on commercial banks. “It is expensive to be poor, remote, and disconnected,” he said.

“Extending the perimeter of the formal economy while lowering the costs of service is not only altruistic, it’s a means to market expansion and lowering risk from the reliance on opaque financial networks,” he added.

United Nations’ Sustainable Development Goal is one of the are which will be the most benefited through cheaper and more efficient remittance services.