Libra, the cryptocurrency of Marck Zuckerberg’s company will be in use since 2020 and will allow billions of users worldwide to make financial transactions online from the famous social network. Almost a decade after the creation of Bitcoin, Facebook has decided to enter the world of cryptocurrencies as a new method of using new technologies to control the banking landscape. Thousands of users from all over the world have pointed out that before Libra is implemented, Facebook must ensure that its users trust the social network again as they did before.
WHAT IS LIBRA?
Apparently, the social network plans to “reinvent money and transform the global economy.” No matter where in the world a user is, you can move your money easily and cheaply with a simple text message without limitations of any kind. To know more about libra currency do Libra Method Sign in.
For its part, Facebook used the same name of the measure, but the symbol £, which could be confused with that of the Pound sterling to be an ornate L.
WHY FACEBOOK LAUNCHED A CRIPTOMONEDA?
In fact, many also wonder if it is allowed to do so, considering all the above-mentioned Cambridge Analytica problems. The company has stated that it wants to reach 1.7 billion people around the world who do not have the possibility of accessing a bank account, a great objective considering that this means having more personal information and money within the accounts in the social network. It is likely that, as the implementation of Libra progresses, the company has some obstacles with regard to regulatory and anti-monopoly policies, especially at a current time where they seek to take away some power from Facebook.
HOW DOES LIBRA WORK?
The local currency may be exchanged to Pounds, which may be spent as dollars without large exchange, transaction fees or using a real name attached. It can be changed when desired without any limitation. Now, the specific operation on the technology that will be used, the association that governs it, how the payments work and under what portfolios will be governed, all this has been shared by Facebook in more than 100 pages about Libra and Calibra, the virtual wallet of the social network.
All this is possible thanks to an important group of franchises and companies have had to unite to guarantee the operation of this new cryptocurrency. This is how the “Libra Association” was born, a non-profit organization that will ensure the development of the token, the reserve of real world assets that gives it value and the rules of the blockchain government. Each founding member had to pay a minimum of 10 million dollars to join and obtain a vote in the “Council of the Association of Libra”, as well as to be entitled to a proportion proportional to the investment of dividends earned on the interest generated from the Libra reserve.
Facebook has not given much information on how the currency will be handled at launch, but considering that traditional payment firms such as Visa and MasterCard are within the founders, it is possible that there is a hybrid approach at the beginning, using these payment methods to exchange traditional money for pounds. This strategy will be vital to deliver financial services to those who do not have bank accounts. Finally, some experts say that in the long term users will need a safer method to get Pounds, so employees of the founding companies will receive the offer to get their salary in this cryptocurrency.
WHAT CAN I BUY WITH LIBRA?
Apart from the transactions that may be made in the same Facebook social network and transfers between users, the company plans to facilitate Calibra to be present in the purchases made by its members day by day. Companies have still been left out of commenting if they will join the Facebook ecosystem to allow payments for their products with Libra, but they are likely to do so once their use is normalized.
In addition, the company boasts that for its launch it will have live support to help users who lose access to their accounts, as well as returns if anyone loses money due to fraud.