It’s been quite a while, rumours were all over the internet about Facebook is working on to launch its own Cryptocurrency and finally, it has been debunked. Facebook, lately officially announced its own cryptocurrency known as Libra.
Libra is represented by three wavy lines “≋”. Libra’s name comes from the Roman weight measurement unit, and “Lib” is the prefix of the English “liberate”, which symbolizes Libra’s ability. Freedom of finance and finance without borders.
The reason behind this is needless to say, this giant social media network wants to overhaul the money transaction way of billions of people by providing Libra “a simple, global currency and a financial infrastructure”. However, it is due to launch next year-2020. According to official announcements, Libra’s mission is to create a simple, borderless global currency and financial infrastructure that serves millions of people.
Currently, Facebook serves more than 2 billion people across its entire application and service system each month, which means billions of people will be added to the encrypted payment system.
The advantage of Libra which makes it unique in juxtapose to rest of available cryptocurrency is it should incur practically no fees. In a white paper, the Group describes how users around the world should benefit from Libra: “The world desperately needs a reliable digital currency and infrastructure that can work together to deliver the promise of an ‘Internet of the money’.”
The Facebook said the Libra is a stable cryptocurrency that stands on three pillars: the currency is based on a secure scalable and reliable blockchain, backed by currency reserves and controlled by the independent Libra Association.
Furthermore, unlike Bitcoin – is not able to mine, that is to create, the cryptocurrency itself. In order to use Libra, we will need a Facebook-owned app called Calibra (officially a subsidiary) which soon be embedded in WhatsApp too. There, users will be able to register by official ID, the app also serves as a digital wallet and as a way to make transfers.
Initially, Libra will be used exclusively on the Internet, but later on, it also wants to establish itself as a means of payment in the real world. Facebook also wants to place Libra CryptoCurrency as a stable investment. The list of 28 partners announced by Facebook in the first phase includes eBay, the world’s leading e-commerce platform. Uber Uber, music streaming platform Spotify and hotel booking platform Booking, such as Mastercard, VISA, USV and other established financial institutions are also among them.
At the moment it is still unclear how Libra will work in practice and what Facebook will earn from it. Facebook expects, however, that it will take many years to establish Libra.
According to the white paper, Libra CryptoCurrency can only be purchased in 1:1 currency and the currency will be transferred to the real asset reserve. The size of the reserve determines the actual value of Libra, which may fluctuate but is small.
It is conceivable that if Libra continues to improve, it can be paid in the future through Facebook or Paypal. It can be used for shopping on eBay, can be invested, can charge for calls, and can also be used to pay for taxi fares.
For more info on the Libra CryptoCurrency see Facebook published Libra’s White paper.