Facebook has released its plans to create a global cryptocurrency known as Libra. As we recently reported, the social media giant had dedicated a team to explore the possibility of leveraging blockchain technology across the Facebook platform.
Details About Libra
This coin will be built on Blockchain and can be used to send funds instantly through Facebook and its subsidiaries – WhatsApp and Messenger. Online purchases will also be possible through platforms such as eBay, and Uber. Basically, the coin incorporates the general everyday activities that everyone undertakes. Contrary to popular belief, Libra is not here to replace Bitcoin or any other cryptocurrency, however, it will be more appealing to the public compared to the other coins because of its integration in apps that users are used to.
Reasons Behind Facebook’s Investment Details About Libra
The main mission of the Libra coin is to provide a simple global currency and financial infrastructure that will empower billions of people. Indeed, the world is in dire need of a reliable digital currency and securing financial assets on mobile device should be simple. Moving money globally should also be easy and effective, unfortunately, this has not been the case. Facebook intends to lower the barriers to capital access as well as the cost involved, so as to facilitate frictionless payment between the users.
Currently, individuals with less money pay more for financial services. Fees, wire costs, as well as ATM charges are just a few of the overhead costs with traditional banking. This has actively discouraged a lot of people from banking their funds in a physical bank.
Currently, 30 other companies are shareholders in the project, including MasterCard, eBay, Spotify AB, Uber Technologies, Vodafone Group, Coinbase and Women’s World Banking. The whitepaper which was released last week provides the technical details of the Libra plan, with a full launch coming next year. Facebook and its other subsidiaries have a total of 2.7 billion users all over the world. Therefore, this is one of the reasons the coin will be such a success.
Characteristics about Libra
Libra has put in place some Blockchain characteristics in an attempt to correct the situation. The first characteristic is that no single entity controls the coin. The second characteristic is open access, anybody with internet access can participate. The final characteristic is security; cryptography ensures the protection of funds.
In conclusion, The Facebook corporate belief system was another major driving source for the creation and funding of the coin. Among other things, Facebook leaders maintain that:
- People should have access to financial services and cheap capital;
- Workers should control the fruit of their labor;
- Libra coin will increase the public’s trust in the decentralized forms of government;
- Global currency and financial infrastructures are for the public welfare;
- Libra will create economic opportunity to ecommerce stores around the world.