In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
Moreover big financial institutions including Banco Santander (NYSE: SAN), JPMorgan Chase (NYSE: JPM), BNY Mellon (NYSE: BK), and Goldman Sachs (NYSE: GS) are researching or developing cryptocurrencies. Finally, even Facebook (NASDAQ: FB) is setting up an entity that looks like a bank, the Libra Association, to operate its proposed Libra cryptocurrency.
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The organization that will administer Libra, the Libra Association, looks like a central bank
To explain, a central bank issues currency, backs currency with a reserve, and regulates and administers the ecosystem that distributes the currency. Beyond that a central bank acts a a bank for other banks. I think the Libra Association looks like a Central Bank for global electronic payments systems like Visa and PayPal.
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The revolutionary notion here is that anybody, anywhere in the world would be able to bank in the City of London via an app on his or her phone. To achieve that BABB is building an app that can be best described as “Apple Pay on steroids.”
The other big idea at BABB is central-bank issued cryptocurrencies. BABB would allow central banks to operate portions of its network in order to distribute funds.
The hope here is to get around bans on cryptocurrencies like the one imposed by the Reserve Bank of India. That is important because India is the world’s largest market for remittance money, people there received around $65 billion in remittances in 2017 according to the Word Bank.