Facebook Plans to Launch its Cryptocurrency Libra- in 2020
Libra, A unit of weight in ancient Rome will be relaunched as a new cryptocurrency announce by Facebook—a digital currency that uses cryptography, a method of protecting the information, to verify transactions.
Facebook is high on its toes to lay down the foundation for a suitable and robust ecosystem that will be able to support “Libra,” the digital money of the company which has been scheduled to be launched in the early half of the year 2020.
With a strong partnership with companies like Uber, Spotify, eBay and many more, this popular and one of the oldest social media networks have finally made noticeable progress in its area of building blockchain network by the official announcement of the launch of Libra. Although it is termed as a cryptocurrency, according to Facebook’s vision on this project, Libra will soon become a new form digital money, that can be used in both online and offline transactions in near future. Unlike Bitcoin, the most popular cryptocurrency, this new form of cryptocurrency from the house of Mark Zuckerberg will serve as more of digital money backed by a reserve of assets, rather than remaining restricted as a speculative asset. The target users of Libra on an initial stage will be the people from developing countries, who lack access to traditional banking. It is predicted that very soon, Libra will attain the same stability as a dollar today and will be used as a complete mainstream cryptocurrency, wholly decentralized and global form of transaction—from banking to taking loans on credit.
Facebook has a comprehensive network of partnership in each of their projects. The project libra is also not an exception. Venture capital firms, crypto firms, and massive corporate finance, telecommunications, and technology service providers, along with non-profit organizations, have formed the non-profit Libra Association of Facebook. Other companies involved in the partnership include Visa, Stripe, Spotify, Uber, Lyft, eBay, PayPal, Coinbase, Mastercard, and Vodafone. They are here to ensure that every unit of Libra Reserve will have an entity of intrinsic to value to be backed, unlike the scarcity issue of Bitcoin.
Apart from running and governing the functionalities of Libra, the Libra Association is also responsible for keeping track of the underlying blockchain as well as the overall evolution of the ecosystem.
Coming to the causes behind which Libra’s need was felt, we can surely find the objectives of this project by Facebook. The primary goals are—
The need for many more people to have access to financial services and to cheap capital.
The legal labor employed by every individual must be given enough priority and recognition, by allowing them to exercise full control of the money they incur from several works, without the mediation of any banking system.
In Facebook’s vision, global, open, instant, and low-cost movement of money will give rise to a lot of opportunities in terms of economy and more commerce across the globe.
Although most people have more faith on the centralized form of transactions due to lack of knowledge and experience on the other form, very soon they will be able to change their mind and start trusting decentralized forms of transactions after gaining adequate knowledge and experience.
The designing of global currency and financial infrastructure keeping in mind the essentialities of public and progressive ambiance around the globe is the most essential philanthropy that could have ever been exercised in terms of economy and commerce.
Incessant progression of the financial inclusion, support of ethical actors as well as constant maintenance of the integrity of the ecosystem is considered to be the primary responsibilities.
As per the comments of Dante Disparte on Libra in an interview by The Verge held over video call from Washington, DC, the newly recruited Head of Policy and Communications for the Libra Association, it has been deciphered that— “the goal really is to improve financial inclusion and do to the transfer of value and payments what the internet has done to the transfer of communication and information,”. Although the Libra Association will have members on a global basis, it will be headquartered at Geneva in Switzerland.
As per international surveys, it has been found that about 1.7 billion people that are nearly 32 percent of the total population of the world have no bank at present, and hence have no access to the financial services of the modern era. Thus, Facebook aims at offering those people free and lower-cost banking services which will be more conventional and hence will positively impact their wellbeing. Therefore, it is needless to say that beyond the manifest financial incentives, Facebook’s long term aim is to tie Libra into its global mission of connecting the planet.