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Facebook and Big Tech – the US and China – Viewpoints

Facebook and Big Tech - the US and China - Viewpoints 1

The announcement by Facebook to “move into finance” has sent shockwaves through the global banking system, and there as been a clear response to this story by BIS, Bank for International Settlements. The announcement by the Social Media company to start issuing Libra, a coin, and expand into payment systems has been talked about and there are several regulators that are starting to worry. Now the Facebook currency and settlement system will not take over the world, but think about the notion that Social Media companies must now deal with regulators that would need coordinating as well as talks on many levels.

If Facebook is viewed as a threat to bankers, to local retails and to others who really do not have the skills to face off this massive firm, bad things can happen. Banks have faced competition before, and it continues as fintech companies threaten payment systems, but not that these companies are small and really do not have the financial resources to put together a real challenge. 

Our Views: The major firms like Google, Facebook, Amazon, Apple, eBay and Alibaba out of China have now started to look at branching out to other businesses. China as a country can control the information that arrives at its shores and more importantly, can control information that passes from one city to another – preventing Chinese citizens from Free Speech discussions.

Now China can encourage any information and system that challenges the norms in Europe and the US while at the same time, discourage the same from taking place within its borders. There will be two worlds of internet, banking settlements, information flow and general knowledge around the globe in the future, the Open System driven by the US and the Closed System driven by China. 

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