Recently Facebook announced its launch of a cryptocurrency named Libra in 2020. Facebook is one of the popular social network platforms and has gained a lot of growth since it started in 2004. Many of us have a Facebook profile and now finally Facebook has introduced its first cryptocurrency that relies on blockchain technology. Libra will allow individuals in developing countries to transfer money.. This will help individuals residing in developing countries who have poor access to traditional banks.
Libra Association, a non-profit organization is associated with 27 companies which include capital firms, crypto firms, nonprofit organizations, financial corporate, telecommunication and technology service providers such as Coinbase, MasterCard, visa, E-bay, PayPal, Stripe, Spotify, Uber, Lyft and Vodafone. This association which is known as Libra Reserve is an asset pool which will help in the growth and development of Libra.
The company has not revealed the currency value yet. But mostly Libra will help in the transaction of funds on a network of applications like Messenger, WhatsApp, and Instagram. The launch of Libra will help 2.4 billion active users to convert their cash into digital money.
Calibra, a subsidiary of Facebook is also among the founding members.. It is also planning to partner with a e-commerce platform which will allow users to shop online using Facebook’s cryptocurrency. According to reports, firms which have partnered with will invest $10 million each in this project. Facebook will not regulate Libra but some of its partners will be the mechanism body of the cryptocurrency.
After seeing Facebook’s security history, a lot of us will not be sure whether you should put your money in Libra or not. It is said that the regulatory body of cryptocurrency will be the multiple partner company and Facebook will have very little to do with regulation of cryptocurrency. During a press conference, Calibra announced that they will keep all the transaction data and details completely confidential and will not share it with Facebook until it is compelled to do so in criminal cases. However, you need to be cautious before investing in Facebook’s cryptocurrency because there is a possibility that it can track your shopping data and transaction habits.
In the press conference, it was stated that it will have frequent drastic changes in its value like another cryptocurrencies. Facebook’s cryptocurrency will peg this project to many governments of different countries in order to limit the currency value fluctuations. They also mentioned that it will be in a closed ecosystem. Libra will not have frequent ups and downs in the currency value so you can think to invest in Libra once it is launched. So in this scenario, you may not completely go bankrupt or lose a lot of money.
Many reports suggest that Facebook is also planning to win the backing of institutions such as the US Treasury and the Bank of England.
However, the launch date is not yet announced and a lot of features of Libra are not revealed yet.
If Libra becomes successful with its plan and motive, it will be one of the historic achievements of Facebook. It would be a great challenge to all traditional banks and banking system to grow. The success of the cryptocurrency will make it difficult for users to separate Libra from their day-to-day lives.
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