Finally, Facebook has announced about launching its own cryptocurrency, named Libra. In a detailed manner, it facilitates the user to purchase items and aids in sending money to others costing nearly no fees.
Using Libra, one can either receive or send cash pseudonymously at any local exchange centers such as grocery shops or through online or even can transact by making use of third-party wallet apps. Even they can send out cash or can buy things using Facebook’s own wallet, named Calibra which can be built into Messenger, Whats app and on its own app. Recently, White paper has been released by Facebook explaining clearly about Libra. Also, they released test net facilitating the user to understand its blockchain system prior its proposed launch in the mid of 2020.
The crypto dealings of Facebook will be handled separately by its subsidiary company, Calibra which aids in privacy protection of the user information, in such a way that the information of the Libra payments will never get mingled with their Facebook data. Hence, the Libra payments are absolutely free from targeted ad marketing. Further, the real identity of the user will never get mingled up with their publicly visible dealings. But along with its other founding members, Facebook/ Calibra will be gaining interest on those users’ cash that is being held in reserve to maintain the Libra wallet value stable.
How does Facebook Libra Cryptocurrency works?
By getting Libra, it is possible for a user to spend local currency like dollars without costing them much transaction fees and also without revealing your real identity. One can cash them out wherever and whenever he or she desire. As Facebook is well aware of the fact that people would not accept or trust their cryptocurrency so easily and that requires help to stimulate adoption. So Facebook recruited some of its founding members for its new venture, Libra Association. They oversee the growth of the token with a not-for profit motive. A minimum of $10 million had been paid by each founding member to join and thereby will become a validator node operator. By doing so, on proportionate to their investment value, they will be entitled with an equivalent share. They will earn dividends corresponding to their Libra reserve share value.
As of now, nearly 28 prospective founding members of the Libra association are listed by Facebook. They also state that they hope to extend their founding members’ crew to 100 prior the official launch of the Libra. The Libra Association is situated in Geneva, Switzerland and planned to have a biannual meet. The choice of the country has been made based on its staunch support towards financial innovative strategies especially when it comes blockchain technology and also for its neutral status.
A Stable coin – The currency of Libra
The cryptocurrency of Libra association is Libra unit which is represented in unicode character as 3 wavy horizontal lines similar like how we use dollar symbol $ to represent .The Libra value is expected to remain stable largely, hence it is considered to be one among the best medium for financial exchange. The value of Libra is connected to a set of government securities and bank deposits in the terms of international currencies such as dollar, euro, pound, yen and Swiss franc understanding its stability.
What Libra means?
Libra is a Roman words which means measuring weight. In a other way it tries to express a feel of financial freedom by comprising the French word “Lib” that means free. The Libra association is still figuring out the exact beginning value for the Libra currency, expecting to be somewhere around to the value of a euro, pound or dollar, that makes it easy to conceive.
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