Richard Crone is a longtime payments geek and when it comes to Libra, he has a particular spin. It boils down to this: forget the talk about crypto currency. Libra fundamentally is a pre-paid account and because it is a Facebook effort, it has reach into some 2.1 billion daily users of Facebook tools (Facebook, Instagram, WhatsApp, Messenger, etc.).
“It’s a prepaid network with global reach – there are also 90 million businesses on Facebook properties,” said Crone.
His blunt message: every credit union needs a Libra strategy and you need it now.
Understand this: Facebook may not be looking to profit off Libra per se. Its strategy seems instead to be to use Libra to drive traffic to Facebook sites and thereby increase advertising revenues.
Which may make Libra yet more attractive to financial institutions.
The conversation includes Heidi Liebenguth, managing partner at Crone Consulting, and it took place in a public space at Caesars Palace, where Crone and Liebenguth were speakers at DN Intersect, the Diebold Nixdorf meeting. There’s minor ambient noise but audio quality of the podcast is good.
Crone finds it “bizarre” that not one FDIC insured institution joined in the launch of Libra.
He also is not deterred by the regulatory scrutiny Libra has won. In fact he sees it as a competitive advantage because it may deter competitors from plunging in with their own similar products.
Listen to this podcast and you definitely will want to dig into Libra and reach the decisions that are right for your credit union. Inaction is not a strategy.
Don’t miss a related podcast with Diebold Nixdorf executive Douglas Hartung, also on Libra.