Last year, Facebook announced the launch of its own Cryptocurrency Libra in 2020, after several months of speculation. This cryptocurrency is likely to be used exclusively for shopping and spending money, unlike other cryptocurrencies. Facebook mentioned that Libra is going to be the game-changer for 1.7billion unbanked people across the world by allowing them to handle their finances properly. No other cryptocurrencies have come up with such a strategy until now.
The US President, Trump in a tweet expressed that he is not a great fan of Bitcoin or other cryptocurrencies because they are not real money but are highly volatile assets based on the air. If crypto assets are unregulated, it can lead to any sort of illegal activity in the country. So, Facebook’s Libra virtual currency has some dependency to keep going. It takes the help of a new Banking Charter subject to all national and international banking regulations. We will have to see how Facebook takes it furthermore.
So why Facebook has created such curiosity about Libra and what it does/how it works; let us look.
5 top secrets of using Libra/5 best features offered by Libra
Libra keeps a simple mission
Facebook’s main aim of introducing Libra is to provide a simple global currency that is accessible to every common human. As mentioned previously, Libra can be a new way of dealing with financial transactions of 1.7 billion people, who do not have a bank account even now, in various parts of the world. The platform works like the Bitcoin Up software and other major platforms looking to provide constant solutions to your financial needs.
Also, it enforces personal identity verification of all new accounts. Libra intends to comply with anti-money laundering regulations, which are adopted by many countries. In this way, it protects all users and retailers against fraud and fraudulent activities.
Libra trends on a new blockchain technology
Libra has been built on new blockchain technology and created using a programming language. It has been designed in a constructive manner that addresses the following requirements:
- Provide sophisticated and high-end security.
- Offers adaptability, flexibility, and scalability to upcoming innovations and administration.
- Ensures scalability to billions of bank accounts with high capacity and low inactivity rates.
Libra is not controlled by Facebook
Though Facebook has introduced Libra, yet it does not hold its control. It remains as one of the Libra stakeholders and allows companies to take control of it. These companies are again stakeholders like Facebook, to Libra. Facebook expects 100 companies across to handle directions to Libra, for which these companies will be their sole decision-makers as well.
Here is the list of few companies that have already backed up Libra.
- Master card
- PayPal
- eBay
- Uber
- Spotify
- Visa
- Stripe … and many more
Libra has an association that acts as an independent non-profit organization and a governing entity of Libra activities. The Libra Association is in Geneva, Switzerland.
Libra will be a transaction platform for Facebook users
Facebook users can use Libra for making transactions online. Also, Facebook adds a special wallet for Libra in the name of Calibre. So, like other digital transaction applications, Facebook can also be used from now on.
Libra can be purchased using Fiat currencies
Fiat currency is legal and approved by the respective government that issued it. The government takes care of the backing up of the currency to users. Users can purchase Libra using any existing cryptocurrencies or Fiat currencies. This makes the exchange of Dollars, Euros, or Pounds easy with the Libra app.
You have several things to know about Libra blockchain technology apart from what Libra does to users. Irrespective of any comments that came up on Libra, compared to other cryptocurrencies, Libra stands out to be more centralized. It is more open to companies’ involvement rather than directly receiving support from Facebook. Libra was planned to be launched in the mid of 2020 and now almost 28 companies run it globally. It is not only for non-bank account holders but also for Facebook users and every other individual as well.
I hope you got a good piece of information about Facebook cryptocurrency. If you have any feedback for this blog or wish to add comments with your ideas, please use the comment box and share your thoughts with us. We will look into it and consider whichever is appropriate and useful for our development.