Libra, the cryptocurrency of Mark 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?
New digital assets are driven by new versions of the blockchain. This is the same encryption technology used in other cryptocurrencies, such as Bitcoin. Apparently, the social network plans to “reinvent money and transform the global economy.” No matter where in the world a client is, you can move your money easily and cheaply with a simple text message without limitations of any kind.
WHAT DOES LIBRA MEAN AND WHY IS IT CALLED SO?
The name Libra is derived from the basic scale used for weight in Rome, and its abbreviation consists of the letters lb. 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 Cambridge, as mentioned earlier, Analytica problems. The firm 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. The implementation of Libra likely progresses. The company has some obstacles 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 franchisees, and companies have had to unite to guarantee the operation of this new cryptocurrency. This is how the “LibraMethod” was born, a non-profit organization that will ensure the development of the token. The reserve of real-world assets that give 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. Still, considering that traditional payment firms such as Visa and MasterCard are within the founders. There may be a hybrid approach at the beginning, using these payment methods to exchange traditional money for pounds. This strategy will be vital to delivering 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.
Once the cryptocurrency is activated, the user can install Calibra. Calibra is a digital wallet that allows anyone to control their movements via a smartphone. The operation of Calibra is similar to any banking application that allows you to make online transactions with other allied people and institutions. Security will be vital for Facebook, who will ask for a series of security IDs to make any move.