The Digital Transformation of Payment Systems - Libra`s Impact on the Global Economy

Abstract

This master thesis examines the conceptual and technical specifications of Facebook's Libra project, which provides a comprehensive understanding of the fiat-backed digital currency, the payment system and financial infrastructures for billions of people to be launched in the first half of 2020. The results demonstrate that Libra could potentially accelerate financial inclusion and improve services within the network, but current drawbacks such as the permissioned blockchain and centralized network limit user participation, and resistance from governments, regulators and legislators underlines the disruptive nature of the project, which, if accepted globally, could have a significant impact on the global economy.

Keywords: Blockchain, Digital Currency, Facebook, Libra

JEL Classification: E42, E58, G28, L86, O33