Facebook Coin – Libra Currency: Facebook declared a digital currency called Libra that will be introduced for use in 2020 and will grant the platform’s billions of users all over the world to make financial transactions online.
The new technology will scare the change in landscaping in banking and it is already the subject of the probe, as Facebook faces increasing calls for control and antitrust measures.
Put controlling activity questions aside – how fast can you use Facebook’s new digital coin to buy coffee? Here’s what you need to know.
What is Libra?
Facebook says Libra currency is a “global currency and commercial infrastructure”. In other words, it is a digital service set up by Facebook and controlled by a new Facebook-generated version of the blockchain, the encrypted technology used by bitcoin and other cryptocurrencies.
The name Libra comes from the fundamental Roman measurement of weight. The short form lb for pound is obtained from Libra, and the £ symbol originally comes from an ornate L in Libra.
Facebook professes it wants to reach the 1.7 billion people around the world who do not have the means to a bank account.
The organization is likely to run into regulatory barriers and antitrust concerns, especially at a time when many regulators wish to split- up Facebook, but no specific legislation has been put forth ahead of the launch. Amidst gossips of Facebook’s new monetary enlargement, members of the US Senate wrote to CEO Mark Zuckerberg in May asking for an explanation on privacy concerns.
Who is in charge of Libra?
The libra currency will be maintained by a combined company called the “Libra Association”. It works as what is known as a “stable coin”, pegged to existing assets like the dollar or euro, in the goal of making it less subject to the volatility that many cryptocurrencies encounter.
The Libra Association is outlined by Facebook as a self-reliant, not-for-profit organization located in Switzerland. It performs the duties of two main functions: to give proof of transactions on the Libra blockchain and to control the reserve Libra is tied to and apportion funds to social causes.
Within the Libra, Association will be a governing body called the Libra Association Council, involving a spokesman of each member of the association, which will vote on policy and operating decisions.
Facebook maintained that although it produced the Libra Association and the Libra Blockchain, once the currency is launched in 2020 the company will pull out from a leadership role and all members of the association will have the same votes in the governance of Libra.
The organization who gave a minimum of $10m(£8m) to be listed as founding members of the Libra Association involve tech companies such as PayPal, eBay, Spotify, Uber, and Lyft, as well as financial and venture capital firms such as Andreessen Horowitz, Thrive Capital, Visa, and Mastercard.
How will I get Libra?
Facebook isn’t going to give out a piece of detail about how the currency will be accessible at launch, but all indicators point to a hybrid point of view. The existence of traditional payments enterprises, such as Visa and MasterCard, in the list of founders, suggests that the company will be perfectly happy to let users simply buy the currency.
But Facebook is also possible to carry out what’s known in cryptocurrency circles as an “airdrop”, handing out little amounts of currency for free in an attempt to kickstart the ecosystem. That will be significant if it is to fulfill its goal of bringing financial services to people without bank accounts.
Ultimately, of course, those users will need a more dependable source of Libra income than simple handouts from Facebook. In the long-term, then, we can also expect some of Libra’s founder members to give their employees all or part of their pay in the currency.
How can I use it Facebook coin – libra currency
When the cryptocurrency starts, users can download Calibra, a digital wallet, that will enable them to send it to anyone with a smartphone. It will be ready for use in Messenger, WhatsApp, and as a standalone app.
It is not certain which countries the coin will launch in first, though Facebook said: “almost anybody” in the world with a smartphone will be able to download the app.
What can you buy with it?
Facebook will launch Calibra, the Libra digital wallet, to enable users to send money to and from each other.
Aside from transactions on the app itself, Facebook wants to make easy the use of Libra at different vendors for day-to-day dealings.
Ride-hailing firms Uber and Lyft are prompt investors in the project, indicating that perhaps users will be able to pay for services on the apps using Libra, though neither company replied to a request for comment.
Is Facebook Coin – Libra Currency safe?
There is a privacy of distresses regarding a financial app run by Facebook. The company said it will apply technologies to avert money laundering and fraud.
“We will be using all the same verification and anti-fraud processes that banks and credit cards use, and we’ll have automated systems that will proactively keep track of activity to safeguard and stop fraudulent behavior,” Facebook said.
It also states it will have “live support” to help users who lose access to accounts and, if a user loses money through fraud, Facebook has offered refunds.
Facebook’s Libra Blockchain will be created on open source code that allows the developer and research community to keep watch on it for design and security flaws, and the company will execute a “bug bounty” program to mobilize security experts to point out dangers in the platform.
How will this make Facebook money?
Libra currency will be supported through a small charge per transaction on the blockchain, Facebook said. Many of these charges will be transferred to merchants who can then take up the costs themselves or relay them to users.
Facebook claims it will keep financial figures from transactions on Libra separate from user ad profiles. The blockchain is “pseudonymous”, the firm said and, like many crypto networks, will enable users to hold one or more addresses not attach to their real-life identities.
“Calibra customers’ account information and financial details will not be used to enhance ad targeting on the Facebook, Inc family of products,” the company said.