Libra, an astrological sign that represents justice is the newly unveiled cryptocurrency that will become open for public use in 2020.
Facebook alongside other organizations created the Libra Association with the aim to managing the technical parts of the Libra project as well as work hand in hand with regulators in order to ensure that there is a smooth sail in the long run.
With some safeguards which are also in use in the real world, Libra will be dedicated to ensuring that the value of cryptocurrency remains stable. Calibra will be the wallet which will be used by Facebook and it won’t share financial data with the social network.
According to David Marcus who is in charge of the project for Facebook, he wrote that “Facebook won’t have any special responsibility over the Libra network”. With a launch date that is set to be within the first half of 2020, Libra is expected to attract the attention of lawmakers in the United States and Europe.
Facebook and Libra
Facebook is not the sole owner of Libra. Instead, Libra is a project of the Libra Association in which Facebook is a co-founder. The headquarters is in Switzerland. Other prominent members of Libra Association include Uber, Vodafone, PayPal, and MasterCard amongst others. The association is interested in getting about 100 members who will help make the project a huge success.
Each member of the Libra Association has an equal right and say. This implies that Facebook doesn’t have a total say in the management of the Libra Association. Instead, it has equal say just like other co-founders e.g., PayPal and Vodafone.
Libra is a means of making the transfer of money from one person to another via the internet super easy, fast and at the same time, cheap.
Similarities Between Libra and Other Cryptocurrencies
Just like bitcoin and ether, Libra is only in digital form. This implies that it can only be spent digitally and you won’t be able to get hold of it in form of hard currency. The transactions that will be made with the use of Libra will be recorded on a software ledger which is referred to as blockchain. Blockchain will be used to confirm each transfer made. During the early stages, Libra software ledger, blockchain will be managed by the members of the association but it will become an open system later in the future.
Differences Between Libra and Other Cryptocurrencies
Contrary to the poor backup of bitcoin and other cryptocurrencies, several assets will be used as collateral that will ensure its value. Libra will make use of global currencies that don’t rise and fall easily – dollar and euro. Depending on how popular Libra gets, its supply will be monitored closely in order to prevent inflation.
Similarities Between Libra and US Dollar
The US dollar is a global currency that can be used during transactions in many countries in the world. In fact, some countries prefer to use the US dollar instead of their own currency whenever they are doing business transactions. Although cryptocurrencies aren’t used in all countries, the aim of Libra is to make it easier for people who don’t have bank account to still be able to make successful transaction online without any hassle. Libra will make it easy and stress-free to send money from one person to another. It will also afford the seller and buyer to maintain anonymity in case they don’t want to be known.