After speculations that went on for months, Facebook finally announced its long-awaited cryptocurrency Libra’s details. According to Facebook’s Libra whitepaper detail and our detailed article, Libra will be integrated into famous social media platforms such as WhatsApp, Messenger, and Instagram which are being used by millions. Facebook intends to launch Libra by the end of 2020 but it can be delayed due to the regulator’s pressure.
Libra arose lots of risks for the central banks and financial system. The reason behind that is the structure of Libra and its aim. Libra Association wants to create a currency that can be used for cross-border money transfers via WhatsApp or its Calibra wallet. Especially when we think that most of the population in Africa or such continents still can’t access to basic banking services, Libra can change a lot and reach millions. Moreover, Libra can be used for e-commerce and other big web sites too.
Libra can be the cure that the global financial systems have been seeking. It can offer custody or transfer solutions without high fees.
Libra transactions will be recorded on a blockchain just like Bitcoin and other cryptocurrencies. So it has some common features with Bitcoin. But still, Libra differs from Bitcoin as it is a stablecoin. Moreover, Bitcoin has an open-sourced structure while Libra cannot be developed by anybody else without Facebook’s or Libra Association’s consent.
Moreover, the company answers the concerns about sensitive private information secrecy too. Facebook has built its Calibra Wallet under another company brand the new company won’t share customer’s details with Facebook and Instagram. So, Calibra or Libra data won’t be shared with social media channels.
Facebook and its associates back every Libra with a basket of fiat currencies such as USD Dollar, Pound, Euro, and Swiss Frank. So the stablecoin won’t get affected by the cryptocurrency sector’s high volatility.
Libra hasn’t been introduced yet and it is not certain whether it will or not.