Facebook's Libra: A Consumer-Friendly Cryptocurrency
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As an avid Facebook user, Libra must have piqued your interest. In June 2019, the social media giant unveiled this cryptocurrency project. Facebook described Libra as a futuristic international currency. Also, the founders believed it could serve as the starting point of a new type of financial system.
As of April 2020, there have been shifts in Facebook and the other founding members’ vision for their virtual currency project. The aim is now less ambitious, though it is still exciting and you may want to learn more about how you and your community could benefit. Hence, keep reading to discover more about the innovative Libra here!
Facebook’s Motivation for Creating the Payment System
According to the Libra White Paper, the world requires a dependable and interoperable payment arrangement that could deliver “the Internet of Money” as a promise. Furthermore, the authoritative guide affirmed the need for an intuitive and straightforward way to secure consumers’ financial assets on their digital devices.
Money transfer around the world and in a compliant manner should also be safe, effortless, and affordable, regardless of consumers’ financial status and location. Hence, the Libra Association contrived the Libra payment system on a scalable, dependable, and secure blockchain.
A reserve of top-quality liquid assets supports Libra, including cash, very short-term government securities, and cash equivalents. This horde of financial instruments will make sure that businesses and individual investors feel confident with their Libra coins being convertible to their local currency.
6 Benefits Founding Members Desired Libra to Deliver to the People
With their avant-garde payment system, the founding members of Libra aimed to make life better for the world’s people. Hence, they designed the financial technology as a straightforward international payment scheme and financial structure that could empower billions of consumers and aid them in achieving better lives.
Libra’s founding members want the people to enjoy the following six advantages with their payment system:
- Secure: The Libra network’s creators built the payment system on blockchain technology with security as a focus.
- Fast and effortless: Transactions using Facebook and its co-pioneers’ payment system are easy and swift when used to spend or send cash.
- Mobile-friendly: The payment system is accessible to every consumer possessing data connectivity and entry-level smartphone.
- Scalable: The open-source Libra protocol targets the fostering of a vibrant society of developers. These people deliver services and merchandise to assist consumers in accessing and utilising the ingenious payment system.
- Stable: Very short-term government securities, cash, and cash equivalents are among the reserve of assets that support the Libra coins.
- Cosmopolitan: The Libra payment system will lead to a more connected and accessible international financial system.
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FREQUENTLY ASKED QUESTIONS
The Libra project met international opposition since its launch in mid-2019. Hence, according to an April 2020 New York Times report, the Libra Association would instead concentrate on making a more traditional payment network. The coins will get linked to a local currency, similar to the digital dollars in a PayPal account. The Libra coins supported by multiple national currencies will become less prominent. Also, making local commerce easier is the new Libra mission.
Libra’s support system includes genuine, government-backed assets from central banks.
It is a Swiss-based organisation that Facebook established to oversee the Libra project. The association governs the namesake payment system. Plus, the Libra Association’s members include diverse and geographically distributed commercial establishments, academic institutions, and multilateral and non-profit groups. At present, Facebook is its main backer and 22 Founding Member firms. These companies comprise Uber, venture capital firm Andreessen Horowitz, Coinbase, and Iliad. Also, Libra has financial company Tagomi, Spotify, Shopify, Lyft, and Uber as its founders.