[kictanet] Vodafone snubs Libra in favour of growing M-Pesa digital money

Mon Jan 27 13:01:12 EAT 2020

Thanks everyone for the very incisive debate. But FB insists https://www.iol.co.za/business-report/technology/facebook-says-libra-will-launch-sooner-rather-than-later-41270259

Hez Gikag’a

From: kictanet <kictanet-bounces+hezron.gikanga=thearcrayon.com at lists.kictanet.or.ke> on behalf of Ali Hussein via kictanet <kictanet at lists.kictanet.or.ke>
Reply-To: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Date: Monday, 27 January 2020 at 11:47
To: <Hezron.Gikanga at thearcrayon.com>
Cc: Ali Hussein <ali at hussein.me.ke>, KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Subject: Re: [kictanet] Vodafone snubs Libra in favour of growing M-Pesa digital money

@John Karanja

Did you know that innovation today also includes how you navigate policy makers and regulators? And by the way there are cases where the regulators are actually pushing the industry to Innovate. Case in point:-

The Insurance Regulatory Authority has a bias towards new innovative thinking in the industry. Innovation is a strange fellow. It allows anyone to use it. Whether regulator, startup or established player. 

Things are evolving my friend. And we need to evolve with it. Gone are the days that we thought innovation is a preserve of the few with pony tails and Rasta hairdoes. 

We must wake up and smell the coffee. 

To Libra’s issue. One thing that is going against Facebook at the moment is the distrust that some governments have of it. Check out a conversation I had on the same issue below:-

https://youtu.be/29MgIDIRJ2g

We must learn new skills and not just think that the old adage - Regulation follows innovation - will come to our rescue. 

Ali Hussein

+254 0713 601113 

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit."  ~ Aristotle

Sent from my iPad

On 27 Jan 2020, at 10:43 AM, mauxdatabase <mauxdatabase at gmail.com> wrote:

@AliHussein Time will tell, just to reiterate my position so it is clear; I think Libra will get the necessary approvals at least from the US Regulators once its clear China CBDC will launch which could be this year.

Dominance on the Internet at all levels is now paramount Geo-politically speaking as the Digital Economy becomes more mainstream and perhaps the main economy.

@Rosemary Koech-Kimwatu the question remains; does regulation follow innovation or vice versa... interested in your thoughts?

On Mon, Jan 27, 2020 at 10:27 AM Ali Hussein via kictanet <kictanet at lists.kictanet.or.ke> wrote:

Rosemary

Well put. 

Ali Hussein

+254 0713 601113 

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit."  ~ Aristotle

Sent from my iPad

On 27 Jan 2020, at 10:18 AM, Rosemary Koech-Kimwatu <chemukoechk at gmail.com> wrote:

Good morning, 

I think I would have handled the Libra roll out differently. One of the best ways to get acceptance in fairly uncharted waters, especially  when dealing with regulators may be to test your products within the licensing framework already acquired, Libra already has licences in most if not all the states in the USA. Then next thing would be to build a community of users of the product with partnerships being developed along the way. What this does is that acceptance for the product is developed almost organically and regulatory limits are increasingly stretched to accommodate the product. The audacious roll out that was carried out must have been unsettling especially in regards to a product that had not yet been widely tested. Every entity that has pulled out of the network is preserving their regulatory good will. Subtle change faces less resistance!

Kind regards, 

On Mon, Jan 27, 2020 at 7:10 AM Ali Hussein via kictanet <kictanet at lists.kictanet.or.ke> wrote:

@John Karanja 

Distribution will mean nothing if the regulators and policymakers decide to declare it illegal.  I know us tech entrepreneurs think we are invincible and that regulation and policy mean jack to us. I've come to be disabused of that notion. I keep on telling anyone who will listen the simple truths of life. One of them is this:-

"If you are not at the table partaking the lunch, dinner or breakfast...guess what? You are on the menu."

And you can take that to the bank. Pun intended.

Regards

Ali Hussein

Tel: +254 713 601113

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim

Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with. 

On Fri, Jan 24, 2020 at 5:21 PM mauxdatabase via kictanet <kictanet at lists.kictanet.or.ke> wrote:

I don't disagree on Tether et al likelihood of collapse.

The Federal Reserve can't match Facebook in terms of distribution globally via the internet (Messenger/Whatsapp/Instagram)  Libra is a more suitable vehicle for the e-dollar, however its created; given China Central Bank is angling to do the same with Tencent and WeChat and their CBDC. My point is there is a scramble for a dominant Internet Currency which is what FB is banking on get Libra approved...

On Fri, Jan 24, 2020 at 2:05 PM Mwendwa Kivuva via kictanet <kictanet at lists.kictanet.or.ke> wrote:

There are many claimed dollar fiat collateralized stablecoins (TUSD, USDT, PAX, GUSD, USDC) and now Libra. Many will end in tears. There is an ongoing court case already in New York on Tether (USDT) that it is not backed by $ on one to one as it is claimed, that there is no $$ collateral to match the claimed value of Tether, and Tether is used to manipulate the value of cryptocurrencies by pumping the price if BTC. 

My point is, a dollar backed stablecoin is not the same as a Federal Reserve Bank cryptocurrency. A Federal Reserve Bank cryptocurrency will not be backed by the dollar because it is the dollar.

On Fri, Jan 24, 2020, 12:47 PM mauxdatabase <mauxdatabase at gmail.com> wrote:

Agreed, Libra according to Facebook will largely be backed by USD so it is really a Corporate manifestation of the eDollar; plus we are talking about a generational play here driven globally by millennial's and younger they are looking(demanding) for both convenience and choice.

They will run to whichever e-currency(s) have both, which is why its a race...

On Fri, Jan 24, 2020 at 12:05 PM Mwendwa Kivuva via kictanet <kictanet at lists.kictanet.or.ke> wrote:

It will be hard to dislodge the dollar. Federal Reserve Bank cas create a dollar serve stablecoin and tht will end the debate

On Fri, Jan 24, 2020, 9:34 AM mauxdatabase via kictanet <kictanet at lists.kictanet.or.ke> wrote:

Libra will probably launch when China rolls-out their digital currency via TenCent and AliPay.

Its an inevitability that the Worlds next reserve currency will be an Internet Currency so the race is on....

On Fri, Jan 24, 2020 at 8:53 AM Ali Hussein via kictanet <kictanet at lists.kictanet.or.ke> wrote:

@Willis

Facebook went to great lengths to assure partners it won’t control Libra. To the extent of creating a consortium with representation across the divide. I guess they failed to dispense the fears of regulators and policy makers. I’m very convinced that the pressure to leave the Libra Consortium came from other quarters other than the reasons being given by those who are now bailing out after paying $10 million to join the Libra Consortium. 

Read more about the Libra Consortium below.

https://techcrunch.com/2019/06/18/facebook-libra/

Ali Hussein

+254 0713 601113 

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a habit."  ~ Aristotle

Sent from my iPad

On 23 Jan 2020, at 8:50 PM, Willis Muriu via kictanet <kictanet at lists.kictanet.or.ke> wrote:

For me, the one major issue was that it was "controlled" by Facebook (centralized) unlike Bitcoin (decentralized.)

Another reason, I think, is because it proved to be serious competition to the Dollar, and you have heard what happens when you challenge the Dollar.

Regards,

Willis Muriu

+254 715 530 349

On Thu, Jan 23, 2020 at 6:37 PM Ali Hussein via kictanet <kictanet at lists.kictanet.or.ke> wrote:

Interesting...Most of the incumbent players are one by one abandoning Libra. What gives? Pressure from regulators? 

Here are some of the other companies that have bailed out on Libra. The list includes Visa, Mastercard, Stripe, Mercado Pago and eBay.

Pressure from regulators and policy makers is real.

Regards

Ali Hussein

Tel: +254 713 601113

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim

Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with. 

On Thu, Jan 23, 2020 at 4:10 PM Mwendwa Kivuva via kictanet <kictanet at lists.kictanet.or.ke> wrote:

Vodafone has withdrawn from Facebook’s digital currency initiative Libra, as regulators and bureaucrats circle overhead.

While Facebook might have become accustomed to sitting in the regulatory spotlight, it seems other companies are not as accepting of the attention. In an increasing tsunami of regulatory scrutiny, Vodafone has become the latest company to withdraw from the Libra initiative, joining the likes of Paypal and Mastercard.

“Vodafone Group has decided to withdraw from the Libra Association,” a Vodafone spokesperson said.

“We have said from the outset that Vodafone’s desire is to make a genuine contribution to extending financial inclusion. We remain fully committed to that goal and feel that we can make the most contribution by focusing our efforts on M-Pesa. We will continue to monitor the development of the Libra Association and do not rule out the possibility of future co-operation.”

https://telecoms.com/501960/vodafone-snubs-libra-in-favour-of-m-pesa/

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