The Blockchain technology continues to penetrate into various spheres and this time Mark Zuckerberg himself turned his attention to them. The creator of Facebook has initiated the development of its own cryptocurrency called Libra, and this is perhaps the most discussed topic of recent days. But what is this new currency, and what is the use of it? We will try to explain this article.
What do we know about the Libra cryptocurrency?
On June 18, 2019, the Facebook Libra cryptocurrency was officially announced to the world, and the project was born. Such an event did not go unnoticed – the entire progressive world paid attention to it. Some of you may ask – why is there such interest in this? After all, cryptocurrency is nothing new.
Well, the reason for the noise lately is the fact that Mark Zuckerberg himself is now involved in this type of project makes the new cryptocurrency extremely promising and curious. And nowadays, everything around this man is big news.
Тhe company is now entering the financial services market and consumers will be able to buy the currency with the platform and store it in a digital wallet. The payment tool is currently available to Facebook itself and to 27 corporate partners of the project. Among them are Visa, Mastercard, Uber, Spotify, and other well-known companies. Facebook users will be able to purchase Libra from 2020. This means that the cryptocurrency will also be focused on ordinary consumers.
Facebook will be positioning its cryptocurrency as a payment method for people who do not have bank accounts. Anyone who has a smartphone, regardless of country of residence, will be able to use Libra for their needs. According to Mark Zuckerberg, “remittances should be as simple as sending messages.”
One of the key features of the Libra coin is that the project will be supervised by a specially organized fund of the Libra Association, which includes major investors. It is known that 28 companies have already invested in the coin today, in particular, Mastercard, PayPal, Visa, eBay, Coinbase and Uber. All of them contributed with $10,000,000 to participate in the Libra Association.
By the time of launching the cryptocurrency network, the number of participants in the fund plans to expand to 100, in order to increase the number of investments to $1 billion. Obviously, the company-investors will introduce the new cryptocurrency into their own services.
At the moment, little is known about the Facebook cryptocurrency, but still, there is some information that leaked on the internet:
- According to available information, operations with Libra cryptocurrency will not be a subject to a commission, or it will be very low and will affect only sellers, and not ordinary customers;
- The full implementation of the Libra coin in Facebook and partner services will be implemented in 2020;
- The cryptocurrency will be able to work even when you are offline;
- The so-called Libra Association will not only manage the cryptocurrency reserve fund but will also fully issue coins and destroy them if necessary;
- According to available information, operations with Libra cryptocurrency will not be subject to a commission, or it will be very low and will affect only sellers, and not ordinary customers.
The history of the creation of cryptocurrency from Facebook.
Initially, there were more rumors and conjectures around the project than official reports. It was plainly not even known that Facebook was preparing exactly cryptocurrency, but there were assumptions that the project would be linked to the blockchain. It can even be said that the development was strictly classified, and only a few months passed between the first official announcement of the creation of the coin and the actual launch of the official Libra website.
It seems that the idea of developing the new cryptocurrency came to Zuckerberg much earlier, because about a year ago, former PayPal president David Marcus moved to Facebook. It was announced that Marcus headed a certain “secret project” and for this project, a team of 50 specialists was assembled. And while everyone was wondering why Facebook has a new team, now we can easily guess that they were working on Libra.
For the first time, people started to talk about the new Facebook system was at the beginning of 2018. Zuckerberg later announced the development of a project called Facebook Coin. Later that same year, the unborn Facebook currency was rebranded and it began to be called Libra. The new coin even has its own symbol – three wavy horizontal lines ≋.
Why Facebook has its own cryptocurrency?
It is safe to say that cryptocurrency is not created with the sole goal of making money. Obviously, Zuckerberg is interested in technology, not in earnings from Libra – as you understand from the information described above, the coin volatility will be low. It is possible that Mark Zuckerberg is building more far-reaching plans, and the Libra project is a kind of “multi-step” that will solve all Facebook problems at once.
We will not exclude the fact that the social network developer has big plans to seize the world of mobile payments. Still, Facebook already has a huge base of potential customers in the form of its users, which will easily make Libra a world leader.
Libra cryptocurrency prospects
Without a doubt, this is a very big event for the world of digital money. Too many serious people are behind the project, and the interest of investors only confirms that something great should be expected from Libra.
Facebook wants to make Libra an evolution of PayPal. They hope that Libra will become a more common and affordable method of payment with fewer fees.
“Success will mean that a person working abroad has a quick and easy way to send money to their family, and a college student can pay the rent as easily as it is to buy a coffee,” says Zuckerberg.
Most financial services today charge an average of 7% for sending money, “taking away” $50 billion from users annually. Libra can also become the basis for microtransactions for just a couple of cents, something impossible with credit card fees.
Libra will very likely blow up the world of digital money. And if the transactions are really as simple as sending a message, then it seems that the new criptocurrency will blow up every competitor out there.