June 23, 2020
Senior Economist Marc Martos-Vila’s – Libra, Fedcoin Could Competitively Threaten Payment System
Read Marc’s latest article for Law360.com- Libra, Fedcoin Could Competitively Threaten Payment System.
Marc Martos-Vila’s article explores how Libra, Facebook’s digital currency, and the potential Fedcoin could impact the global payments system. Libra’s unique structure, combining aspects of traditional and cryptocurrency systems, may lower transaction costs and increase consumer welfare but also poses regulatory challenges and risks of anti-competitive behavior. Meanwhile, Fedcoin, a hypothetical central bank digital currency, is seen as less urgent for the U.S. due to its competitive payment landscape but could enhance payment system competitiveness in other countries. The development of these digital currencies will depend on various factors, including regulation and market trust.