Libra, a business alternative for Nicaragua?
The social networking giant Facebook, in recent months announced the upcoming launch of its digital currency: Libra. According to the magazine “The Economist”, this digital currency could become one of the largest financial institutions.
Facebook has not yet defined its official launch. However, it is estimated to be in the first half of next year. Libra will be able to buy, sell, send and receive within the companies that are members of the Facebook group, also in the competition. The ease of this digital currency is just a touch away on a smartphone, you can transfer money instantly, removing any geographical barrier between the sender and receiver.
Libra’s main objective is to reinvent payment services, reduce transfer costs. It will also provide greater stability than Bitcoin, as they will be backed by a basket of currencies.
In Nicaragua, there is a legal framework that regulates the issue of electronic money, which is the Rules for the Authorization and Operation of Institutions that operate with electronic money, Resolution CD-SIBOIF-725-2-ABR26-2012 dated April 26th, 2012, and each one of its pertinent reforms. In this regard, suppliers of Libra wallets, and software services that will allow users to send and receive currency, must comply with the relevant regulation, in attention to the prevention of money laundering and other types of assets.
Therefore, it can be concluded that there are still details to be defined for Libra to give its users the confidence of an effective and transparent operation. However, it promises to be a broad platform for companies and individuals. In other words, any individual with access to a smartphone will have the opportunity to reduce transfer costs.
Denisse Gutiérrez Rayo
Associate
García & Bodán
Nicaragua