Facebook revealed one of its current topics Libra Cryptocurrency which will help to buy things or send money to people which will be nearly free of charge.
The mission of Facebook is:
“A simple global currency and infrastructure that empowers billions of people.”
It begins with a new cryptocurrency designed for payments ranging from micropayments to settlements costing any fees. As well as they have enabled smart money use cases like dynamic contracts, which could enable blockchain based loans or insurance.
The Libra Cryptocurrency can be successfully paid out using third-party wallet apps or Facebook’s own Calibra wallet.,
which will make into WhatsApp, Messenger and its app. Along with this Facebook also released its white paper making more clear about Libra. You can also cash out or buy Libra Coins online or,
at local exchange points like grocery stores, shopping centers, etc.
Facebook is starting up a company called Calibra which will deal with crypto dealings and secure user’s privacy so that it will never amalgamate your Libra payment and Facebook data in any case.
To dominate Libra’s future and squeeze up the tons of cash out of it immediately,
Facebook has used a smart way by pulling payments into its domain.
Libra Cryptocurrency value will be pegged to a market-value basket of several trusted currencies.
Libra is fully secured as every time the user deals with traditional currency for Libra, that money will go into the reserve, and remain there until the customer withdraws money from the system.
Risk and Reward
Facebook had to face both a threat and an opportunity. If a contender like Google or an upstart built a popular coin and could monitor the transactions, they’d learn what people buy and could work in on the billions spent on Facebook marketing.
Facebook also wanted those 1.7 billion people who lack his bank account they might choose the one who offers them financial services as well as online identity providers too.
As yet existing cryptocurrency like Bitcoin and Ethereum weren’t properly organized as their unanchored price was receptive to huge and unpredictable swings making it hard for merchants to accept as payment.
Now Facebook wants to make Libra coin the evolution of PayPal. Facebook is hoping Libra will become easy to set up, more omnipresent as a payment method, more efficient with fewer fees, more accessible to the unbanked, more flexible thanks to developers and more long-lasting through decentralization.
Along with this, Facebook also writes
“Success will mean that a person working abroad has a fast and simple way to send money to family back home, and a college student can pay their rent as easily as they can buy a coffee”.
That would be the best benefit provided to the people when they stuck paying rent in insecure checks while exploitative settlement services charge an average of 7% to send money abroad, taking $50 billion from users annually.
How does Libra Cryptocurrency work?
Encash in a local currency,
Spend them like dollars without big transaction fees or your real name attached, cash them out whenever you want.
Facebook knows that wouldn’t trust the use of cryptocurrency so the social network recruited the founding members of the Libra Association, a not-for-profit that oversees the development of the token, the reserve of physical world assets that gives it value and the governance rules of the blockchain. They also gave their funding like each founding member paid $10 million to join and become a validator node operator.
The soon to be founding members of the association are
- Payments: MasterCard, PayPal, PayU, Stripe, Visa
- Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, Mercado Pago, Spotify AB, Uber Technologies, Inc.
- Telecommunications: Iliad, Vodafone Group
- Blockchain: Anchorage, Bison Trails, Coin base, Inc., Xapo Holdings Limited
- Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures
- Non-profit and multilateral organizations, and academic institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking
Facebook is still hoping their best to make their association with 100 founding members before the official Libra Cryptocurrency launch.
Libra Governance — Who Gets a Vote
How to join the association?
Members must have a half rack of server space a 100Mbps or above best internet connection,
A full-time site reliability engineer and enterprise-grade security.
Investors who are Crypto-focused must have more than $1 billion in assets under management,
while Blockchain businesses must have been in business for a year, have enterprise-grade security and privacy and custody or staking greater than $100 million in assets.
Libra Cryptocurrency – A Stable Coin
A Libra is a unit of the Libra cryptocurrency represents by three wavy horizontal line Unicode characters. A word Libra comes from the word for a Roman unit of weight measure.
The Libra Association is still hammering out the exact start value for the Libra,
but it’s meant to be somewhere close to the value of a dollar, euro or pound so it’s easy to conceptualize.
The Libra Reserve — One for One
Every time people cashes in a dollar or local currency, that money goes into the Libra Reserve
And., an equivalent value of Libra minted and doled out to that person. Now when any founding member cashes out from the association,
Libra Cryptocurrency they give back is destroyed or burned and they receive the same value in their local currency back.
That means there’s always 100% of the value of the Libra in motion, added with real-world assets in the Libra Reserve.
Today’s money doesn’t work for everyone. Those of us living comfortably in developed nations
Likely., don’t see the hardships that befall migrant workers or the unbanked abroad.
Libra has the potential to get more money from working parents back to their families and help people retain credit
Even if they robbed of their physical possessions.
If Facebook succeeds and legions of people cash in money for Libra,
And., the other founding members of the Libra Association could earn big dividends on the interest.
There is one disadvantage of Libra that
If Libra hacked or proves unreliable, it could cost lots of people around the world money
While souring them on cryptocurrencies.