When you are active on social media, every day you might be seeing news flooded with Libra cryptocurrency. Thousands of thoughts are coming to every individual about Libra future, what is it, how it will work and the lists of question goes on. So, I am helping you with a guide regarding the common notion of “Libra”. Libra is a global digital currency introduced by Facebook.
The introduction of “Libra” by Facebook is just to target the population who are not having banking facilities. It can be said that the introduction of “Libra” will give a new face to global economy or in a better explanation we can say the beginning of the era of virtual currency that will transform the global economy.
The digital currency named “Libra” is developed by Facebook, but it will not be totally under the control of Facebook, it intends to share the control with cluster of organizations like venture capital firm, credit card companies and some other tech giant companies too.
Name analysis
The name Libra comes from the basic Roman measurement of weight. The abbreviation lb for pound is derived from Libra, and the £ symbol originally comes from an ornate L in Libra.
Information Security systems
At launch, the customers will able to send Libra inside of Facebook Messenger and WhatsApp, with it mostly being meant as an intermediary for transferring traditional currencies. Eventually, Facebook hopes Libra will be accepted as a form of payment, and other financial services will be built on top of its blockchain-based network. Facebook’s blockchain boss, David Marcus, says Calibra will store this financial data on separate servers, and won’t share it with Facebook.
So here question arises that what will happen with the information privacy control over the online social media. So here I am glad to share that Facebook is also launching a subsidiary company “Calibra”. The main motto of this company is to develop financial products and services that all will be based around “Libra”.
Libra cannot be truly coined as cryptocurrency. The only thing that is common in cryptocurrency and “Libra” is that they all move on block chains.
Furthermore, the value of a Libra coin is not created by the underlying technology, the market, math or however you choose to understand bitcoin and similar assets. It’s a digital representation of a basket of fiat currencies and other securities.
White paper statement
The white paper opens with: “Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people.” Glossing over the unrealistically aspirational qualification of “simple” (really??), can we use a security as a “currency”?
Innovative Technology
Libra is the innovative idea of securities as payment mechanisms. Currency hedges is the major concern with the “Libra” as the currency risk is the prime factor associated with Libra. There is fine line between the “libra” and the basket of currencies along with government debt.
Libra has left the customers wide eyed with the Facebook idea of digital currency. Libra is unlikely a different idea backed up by the technological innovation. In combining elements of distributed ledger technology, economic philosophy and savvy marketing, the initiative will end up boosting awareness, adoption and development of cryptocurrencies and security tokens more broadly.
Facebook makes most of the income through the advertising , so at present it will be too early to calculate the benefits of “Libra” for the Facebook. Under Calibra, Facebook will build new digital wallets into its WhatsApp and Messenger services to make it easier for people to send money to contacts. That could open the door for Facebook to expand into payments and commerce. The targeted market is Asia as the digital wallets are more popular in Asia than U.S. at the initial stage “Libra” would be controlled by 100 companies.
Facebook has shared its views from the success point of view of “Libra”. They will be succeeding in providing a platform to customers, in that aspect the person working abroad can send money to their family in a fast and simple ways. Even the college students can pay out their rent in that simple manner as they buy a coffee.
Facebook is hoping that “Libra” will become easier to set up in android and with IOS too. It will be used as more ubiquitous mode of payment.
Libra Association
At the initial level, the currency coined by Facebook “Libra” will be serviced by the collection of companies known as “Libra Association”. Libra will function as “stable coin” just like existing assets like Euro. The Libra Association is a Switzerland based which comes under Not-for-profit under organization. It is an independent organization with two main aims it will validate the transactions done through Libra Blockchain and it will be responsible to manage the Libra reserve. Libra will generate and reserve the funds for social cause too.
Within the Libra Association will be a governing body called the Libra Association Council, comprised of a representative of each member of the association, which will vote on policy and operating decisions.
Once the Libra will be launched in 2020, Libra Association and the Libra Block chain will be withdrawn from the leadership role and all the members of the association will enjoy same voting rights.
The companies who contributed a minimum of $10m(£8m) to be listed as founding members of the Libra Association include tech companies such as PayPal, Ebay, Spotify, Uber and Lyft, as well as financial and venture capital firms such as Andreessen Horowitz, Thrive Capital, Visa and Mastercard.
How to use Libra ??
When the “libra” will be launched in 2020, then customers will have authority to download the Calibra, which is a digital wallet, that will allow them to send it to anyone with a smartphone. It will be available in Messenger, WhatsApp, and as a standalone app.
At present it is not clear that which countries will get the coins first. In general Facebook claims that anyone with smart phones will be able to get the access of Calibra-the digital wallet. Calibra is a Libra digit wallet which will allow the customers to send money to and from each other. Libra will ensure the vendors for day-to day transactions.
As the ride hailing firms like Uber and Lyft are also investors in Libra so in future customers can expect the payment to ride services from Libra wallet too.
Libra will sustain mere charges on per transactions. Many of these charges will be transferred to vendors who can then absorb the costs themselves or relay them to users.
The customers should not worry regarding the information privacy safety concern. Facebook said that they will implement such technologies that will prevent the customers with money laundering and fraud too. They will eb using same verification system and anti-fraud process that banks and credit card departments are using.
“Libra” will have “Live Support” to online users. In case they lose their money through fraud or even loose access to their accounts they will support them. In case of money fraud the Facebook will ensure the refund of amount to the customer’s account.
Facebook’s Libra Blockchain will be built on open source code that allows the developer and research community to monitor it for design and security flaws, and the company will implement a “bug bounty” program to incentivise security experts to point out vulnerabilities in the platform.
The Statement by Facebook :-
“Calibra customers’ account information and financial data will not be used to improve ad targeting on the Facebook, Inc family of products,” the company said.
So, as we all are moving with one step ahead in the technological innovative digital wallet, “Libra” coined by Facebook can be treated as one more addition to new payment gateways which will ensure the safety of information. So, cross your fingers and welcome the new assets of classes in the form of virtual currency in year 2020. The digital wallet has got one more stable coin. Future depends on use and the services provided by “Libra”.
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