Over the years, Facebook has transformed the way we interact with each other online, and with the introduction of Libra, it’s new cryptocurrency, it’s set to transform the way we transact with each other as well. #Libra #Facebook #Cryptocurrency
Billed as a stablecoin, Libra’s value will be pegged to a basket of fiat currencies. In theory, this should keep the value of the digital currency immune from the wild fluctuations experienced by other blockchain platforms like Bitcoin.
However, what it gains in stability, it loses in other key benefits that make cryptocurrencies attractive – The trustless networks and privacy…all the things that cut out the middlemen – you know, institutions like MasterCard, PayPal, Visa and Stripe.
So, it makes perfect sense for these same institutions to play ball with Facebook.
Along with several other large corporations, they each paid a $10 million membership fee to be a founding member of the Libra Association – which is the not-for-profit organization based in Geneva Switzerland, and created by Facebook to oversee it’s new blockchain.
Instead of Facebook fully controlling Libra, it will get a single vote in its governance, along with the other founding members of the Libra association. According to Techcrunch, The association will promote the open-sourced Libra Blockchain and developer platform with its own programming language.
Facebook is launching a subsidiary company called Calibra which will reportedly handle its crypto dealings and protect users’ privacy by never mingling Libra payments with Facebook data so it can’t be used for ad targeting
Users of the coin will be able to buy and cash out their libra online or at local exchange points like grocery stores.
The Fiat currency used to buy Libra will be held in a reserve. When a libra coin is cashed out, its essentially burned, keeping the value of the circulating Libra stable.
The digital currency can be stored in 3rd party wallets, or in Facebook’s own wallet also named Calibra – this functionality will be built directly into WhatsApp, Messenger and the Facebook App.
This new digital currency will give people around the world the ability to buy things and send money with virtually no fees, taking a massive bite out of a $50 billion dollar a year remittance industry.
With Facebooks 2.4 billion users and its partnerships with the key payment processors, we may be witnessing the birth of the first one world currency.
Libra is set to officially launch in the first half of 2020.
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