Two tech superpowers attacked banks under the guise of the coronavirus

Special year

2020 is a special year in almost every subsector of the payments industry, and the COVID epidemic has completely rewritten virtually all previous expectations and trends. Overall, banks and payment service providers have fared very poorly from the crisis in terms of revenue, and McKinsey estimates that total payments industry revenue fell 22 percent in the first half of this year from the previous year. In the second half of 2020, cash flow revenue will increase somewhat, so sector revenue is expected to decline by 7 percent for the year overall.

At the same time, the coronavirus pandemic has broken taboos in many countries, and regulators and governments around the world have made difficult and time-consuming decisions, especially when moving towards digitization. Additionally, big tech companies have “pushed the button” on them, prompting them to appear in several large markets with new types of payment services.

Facebook Libra is coming

His original idea was that Facebook and the Libra alliance it created would have created a multi-currency global stablecoin, but for the launch now, even at the beginning of the year, they are planned with stablecoins pegged to a single currency.