Question

As the global success and acceptance of Facebook’s social networking platform, discuss whether Facebook Novi would also be able to gain acceptance and success in developing countries such as Pakistan.

subject E-commerce

Answer 1

The Novi is just the renamed version of earlier crypto launched by Facebook which was named as libra. The Novi is aimed to make the worldwide transfer of payments easy and need to be backed up by the many organizations and trust. The trust and transparency is the foremost requirement for being such payment system successful and in case of developing country it very difficult to find the trust element in payment system. Novi would act as digital wallet for storing and exchanging the digital currency. However if we look it from different perspective of making the financial inclusion easy and the program outreach is huge because it is backed by Facebook, therefore it has got all the potential to reach the people in similar fashion as the Facebook. The only roadblock to its success would be to get the necessary approvals from the government. As many developing country’s government will find it a way of money laundering and will not support this program. Otherwise in terms of acceptance by the user it will easily find a way but when it comes to the regulators and resistance from other financial organizations it would be difficult to find the way to enter.