05-Jul-19, Asia Times
Facebook is taking the financial world by storm with its proposed new currency, Libra. Regulators, however, have their doubts and some have threatened an outright ban. But despite all the hype and misinformation, the news has focused attention on a market ripe for disruption.
%20Reuters.jpg "Libra shows global remittance ripe for change (c) Reuters")
Image: Reuters
The global remittance market, one of the targets for the new currency, is stuck in the last century and Facebook's leadership has identified untapped potential. Can a social-media company really improve the lives of the global poor? For countries such as those in the Arab Gulf region, this is a key question.
The global remittance market hit an all-time high in 2018. The World Bank estimates that annual remittance flows to low- and middle-income countries reached US$529 billion in 2018. The bulk of these remittances are subject to exorbitant transfer fees and use ancient technology.