A few days ago, Facebook announced Libra, the new global virtual coin. The seeds for this announcement were planned earlier this year. At the Facebook’s F8 annual software developer conference Mark Zuckerberg said: “I believe it should be as easy to send money to someone as it is to send a photo”. This quote is emphasizing that the blue tech giant Facebook had a real intention to set up a new technological payment system. And it did eventually.
Naturally, since the Libra announcement accrued various opinions were published in the financial and technological media in Israel and abroad. There is no doubt that this phenomenon is a global one, but we can’t ignore that there is a localized angel.
A transverse historical look at the Israeli tech industry evolution indicates that past new cultural phenomenon and developments (Libra style announcement), can easily function as a new business opportunity for the Israeli entrepreneurs and startups. Here are 5 reasons why is that happening and how?
Israel is well known as a “startup nation”. Thousands of tech companies are taking an active part in the local eco-system. Besides the good technology which is based on deep knowledge, the Israeli entrepreneurs are characterized as trends identifiers.
Somehow they can see clearly what the next big thing is going to be and act accordingly. For example, prior to the block-chain and cryptographic establishment, local companies were worked on developing suitable solutions. It’s very much possible Libra style project (uniform currency operated by tech corporations) took closely in consideration by the local innovators.
Cultural tech phenomenon needs global forces pushing it. Does Israeli eco-system fit this standard? Yes. With her innovation, Israel is very much present at the global tech map, next to the USA, Japan, and other European countries.
Israeli technological entrepreneur’s advantage is expressed, not only at the internal level but also externally worldwide. The local entrepreneurs hold good skills for bonding and making good partnerships. Clearly, the ability to associate (and develop through responsibility) is important mainly because of the financial aspects.
With approximately 500 active companies and startups, the Israeli Fintech sector has become a world leader. And its work both sides. From one hand, many of the global financial institutions invest in the Israeli startups, and from the other hand, thousands are consuming their services. Although some sides in Israel will not agree on that, I believe one of the reasons for that success is financial education and awareness. Finance is the main issue in the local atmosphere. For that, entrepreneurs link effectively between economy and technology.
Facebook’s worldwide establishment and global recognition increase the chances Libra digital coin will succeed. Moreover, Facebook partnered with other financial corporation in order to build a strong solid coalition for the Libra impletion (Visa, MasterCard, PayPal, and many others). Will that is enough? Probably not.
True, Facebook collaborated with other corporations but it seems to be more of the same. This is only natural that the secondary industry that will support the digital payment system will be built from fast thinking startups and entrepreneurs, who plan, adopt and implement, just like Israeli ones.