Facebook revealed its new cryptocurrency project and published the white paper of Libra cryptocurrency. The white paper showed Facebook ambitious plan to create a new cryptocurrency that will change the shape of payment transactions in the world.
Facebook aims with its new cryptocurrency using its applications to make the transactions as easy as sharing photos and videos.
According to the Facebook privacy scandals in the last period, Facebook decided to make its currency shared with other companies and managed by a neutral body to avoid any doubts.
But, what is Facebook Libra?
A non-profit organization called Libra Association based in Geneva, Switzerland run this decentralized digital currency. The digital currency uses the open-source blockchain software. This means that any developer in the world can use and deal with it. Anyway, People won’t need to deal with Libra Association, but they will deal with Libra or a digital wallet.
Facebook digital currency, Libra unlike other cryptocurrency has an advantage that is the fixed price which represents the core of its difference among other cryptocurrencies.
What are the founding members of Facebook Libra?
There are about 27 founding members behind Facebook Libra. The goal is to have 100 companies of this cryptocurrency in order to be launched in the next year. Each company will run one node.
Many founding companies such as Visa, Stripe, and PayPal plan to run campaigns to motivate traders to deal with this new digital currency.
What is Calibra?
It is a Facebook digital wallet that can be used as a separate application or as a connected one to Messenger, Whatsapp, and Instagram. The digital wallet will be used for money transactions among people via Facebook Libra.
With this new cryptocurrency, Facebook aims to enable people to keep money freely and securely on their phones. In addition to allowing people to send and receive money from any place in the world without fees. Even though Facebook is thinking about imposing low fees on the traders. From a marketing perspective, this will make users spend more time using Facebook since it will be more than a social platform.
France’s Finance Minister Bruno Le Maire warns against Facebook Libra becoming a sovereign currency. He believes that the launch of this cryptocurrency will affect the entire global banking system. Other countries also try to impede this new cryptocurrency and claim to set limits.
Libra cryptocurrency became a trend in the world and many companies questioned this new step from Facebook. However, do you think Facebook will change the shape of money transactions?
Great article