Facebook will launch Libra Digital Currency in 2020
On 18 June 2019, Facebook co-founder Mark Zuckerberg revealed the details of the company’s new plans about the cryptocurrency world. Facebook has collaborated with 27 organizations around the world to start the non-profit Libra Association and create a new currency called Libra.
Facebook has launched a test version blockchain. It is open-source software with Apache 2.0 License, which means developers can experiment with building applications on the platform and submit feedback on the code. Facebook is launching this Libra Digital Currency in 2020.
Libra digital currency can be used anywhere from grocery stores to malls. You will easily pay or buy Libra currency online with the help of third-party wallets. Also, Facebook has made its own Calibra Wallet which will be built in Whatsapp, Messenger apps. This will make the transactions super easy, secure and free for worldwide users. All of this is built on blockchain technology. It’s decentralized, meaning it’s run by many different organizations instead of just one, making the system fairer overall.
The Libra Association:
The Facebook company has collaborated with 27 different organizations for this big project. The collaborators and supporters in the nonprofit Libra Association include Facebook, Calibra, Paypal, Visa, MasterCard, Uber, Andreessen Horowitz, Mercy Corp., Vodafone, Union Square Ventures, Ribbit Capital, Thrive Capital, LYFT, Stripe, Breakthrough Initiatives, eBay, Spotify, Anchorage, Xapo, Bison Trails, Creative Destruction Lab, Coinbase, Mercado Pago, PayU, Iliad, Farfetch, Booking Holdings, Kiva and, Women’s World Banking.
All partners have invested at least $10 million in the project’s operation. After launching the Libra project in 2020, they will promote open-sourced Libra blockchain and developer platform with its own Move programming language plus sign up businesses to accept Libra for payment. There will be discounts and rewards for customers who use Libra Digital Currency.
Facebook is also hoping to increase the numbers to 100 founding members until the Libra launch. The funding is open to all who meets the requirements. That means, even Google and Twitter can collaborate in this big project. The Libra Association is a purpose-built, independent non-profit organization headquartered in Geneva, Switzerland.
Facebook Calibra Wallet
Facebook is also launching a subsidiary cryptocurrency dealing company called Calibra. It will manage all transactions, user’s privacy, data. Your identity will be hidden for publicly visible transactions. All partners will earn interest on the money (Libra) in your wallet.
The Risk and Reward of Facebook Libra:
With the use of Facebook Libra, the international transactions will have the lowest fees which also includes credit cards. This might affect the Facebook Ads Revenue as many promoters use credit cards and the transaction fees are currently high. On the other hand, the 1.7 billion people who lack a bank account might choose whoever offers them a financial services alternative as their online identity provider too.
Currently, Bitcoin and Ethereum cryptocurrencies in the market are not properly engineered. Also, Their unpredictable prices make them restricted to regular market transactions. But now, as giant Facebook is coming in the crypto market, digital currencies are gonna rise-up so fast. Currently, Facebook has 7 million advertisers and 90 million small businesses, billions of users with its user experience data. This is going to be game-changer!
‘Evolution of Paypal’
Paypal is famous for its easy international transactions. Now Facebook is trying to make Libra the evolution of Paypal. Facebook Libra will easy to use, easy to set-up, better option as a payment method with the lowest fees. In the current world, we use insecure checks, high rate interest or transaction fees for payments. This all will be eliminate by Libra cryptocurrency.
“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,” Facebook writes in its Libra documentation.
How does Facebook Libra Cryptocurrency Works?
Through Calibra wallet, you will able to send or buy Libra. Calibra will be integrated with Facebook Messenger, Instagram, Whatsapp. For example, there will be a button in Instagram or Whatsapp to allow the user to send or receive money internationally. It will be as easy as sending a text or GIF! There will be also a separate Calibra App for users.
Other third-party applications, banks, companies can make similar apps to support Libra currency for their transactions. Because of Facebook’s large users, cryptocurrency will get huge exposure in 2020.
Libra will be backed 1:1 by a bundle of financial assets likely to include bank deposits and short-term government securities from the US Treasury, among others. This will help it avoid the volatility that has plagued other cryptocurrencies like bitcoin.
This will make Libra a ‘stable’ digital currency. There will be no ups and downs like bitcoin or other cryptocurrencies. The Libra Blockchain will be backed by Libra Reserve, “a reserve of real assets” that will provide the cryptocurrency with “stability, low inflation, global acceptance, and fungibility”.