cryptocurrency

The cryptocurrency question – Travel Weekly


Jamie Biesiada

Jamie Biesiada

The Libra Association, a nonprofit created largely by Facebook, last month revealed it was working on creating a digital currency, to be called Libra.

The association faces a number of hurdles  one of which is passing regulatory muster — but a number of noteworthy companies have signed on as partners, including travel-sector heavyweights Booking Holdings, Uber and Lyft.

Especially considering Booking’s participation, it begs the question: should the average leisure travel advisor begin readying itself for a cryptocurrency future?

The answer, according to Phocuswright’s senior technology and corporate market analyst Norm Rose, is: not yet.

“There’s so much to do if you’re the average travel agent,” Rose said. “I’m not sure if I would worry about this quite yet. This is going to take years to develop.”

But down the road, Libra, or something like it, could take on greater significance. As digital currencies become more common, travel agencies may have to consider accepting them as a form of payment, especially if Libra successfully becomes a true global currency — and many believe Facebook’s backing will help push Libra, and other cryptocurrencies, into the mainstream.

“Let’s say that the yen, the Japanese yen, became the new global currency,” Rose said, by way of example. “Would the average travel agent need to accept yen? If people in the United States used yen to pay for travel, yes. That’s what I’m talking about. They’re going to need to be prepared to accept cryptocurrencies  as it grows as a form of payment.”

Rose believes Booking Holdings, Uber and Lyft’s involvement with the Libra Association signals their desire to accept cryptocurrencies as payment.

And since one of Libra’s goals is to create a global digital currency aimed primarily at emerging markets, where much of the population remains unbanked, Rose said that large, global travel agencies, especially those looking to expand in emerging markets, should closely follow the news.

Regardless, it is still early days for Libra and its development.

“We’ll see what happens a year from now,” Rose said. “But I would never doubt the power of Facebook and its ability to bring something to the marketplace.”



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