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Facebook claims it will outreach millions of unbanked population of the world and propounded an extensive solution for them.
That being said, Facebook has recently decided to inaugurate its own cryptocurrency Libra after being motivated by the Chinese government act to publicly endorsed cryptocurrency. Facebook creator Mark Zuckerberg is of the view in order to remain relevant in extremely competitive tech industry, we need to set aside resources and intellectual capital to foray into the cryptocurrency.
Facebook cryptocurrency Libra will be available for the masses in 2020 and allow its billions of users across the globe to make financial transactions online via Libra.
This new technology appears to be disruptive for the banking industry and global payment processing services. Despite the hype created by the mainstream regarding the potential implication of Libra and its probable uses, the skepticism amongst the peoples persists that’s why Libra is undergoing continuous scrutiny before its launch.
Apart from the regulatory questions about Libra, you might be wondering how soon we’ll be able to buy a cup of a coffee with a Libra coin.
Overview of Libra
Facebook says Libra is a virtual currency geared towards transforming global financial infrastructure. Simply speaking, it is a digital asset created and owned by Facebook and unleashes the same encrypted technology that was used in Bitcoin and other Blockchain-driven cryptocurrencies.
Why is Facebook launching its cryptocurrency and what are the legal constraints?
Facebook claims the amount of un-banked persons in the world surges to 1.7 billion in an upcoming future and it wants to facilitate them.
Facebook cryptocurrency project is most likely to become prey to regulatory hurdles as most of the US government officials aren’t satisfied with this project.
Amidst rumors of Facebook’s emergence as a financial services provider, the US Senate wrote to a Facebook CEO to provide clarification on the privacy concerns.
Eventually, the Senate session was invited whereby Libra enthusiasts and critics express their stance and in the end, Facebook CEO was allowed to present his take on it. Zuckerberg strongly believes if China is launching its cryptocurrency why should we refrain from doing it. In the end, this discussion didn’t lead to any meaningful conclusion.
Who Own Libra?
Facebook cryptocurrency is completely governed and operated by the consortium of independent companies collectively known as “Libra Association”
Like stablecoins, Libra is pegged to the traditional fiat money like USD or Euro to make it less prone to crypto market volatility.
The Libra association is a non-profit organization and works under the supervision of Facebook. There are two main jobs of this association. One is to validate all the transactions executed through the Libra blockchain and to manage reserve Libra is properly tethered with the liquid asset like U.S. or Euro.
How to Use Libra?
Once the Libra is ready to use, you can download Calibra, a Libra wallet, and can send Libra coins to your friends through your smartphone.
Nobody knows in which country Facebook will launch its digital coin first, though Facebook ensures “anyone” can download the app easily.
Security of Libra
There are plenty of serious concerns regarding the privacy aspect of the financial app put forth by Facebook. Though the company claims it’ll incorporate the technologies within its app to restrict illicit activities.
Facebook Libra Blockchain project is completely open-source therefore, developers and security Pen testers can actively contribute to the source code of it and can point the security vulnerabilities within it.
In order to overcome the trust deficit of its potential users, Facebook has embedded live support in its app to help those users who lose access to their accounts.
Even though Libra has some severe regulatory compliance hurdles, but the Libra is undergoing strides of modification for its massive adoption. Now we’ve concluded, we want you to share your perspective about the Libra coins whether it is good or not?