All you need to know about Facebook’s digital currency project - Libra - covered in BTCMEX Blog!
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The digital currency Libra was announced in 2019 by Facebook. The project's official release is expected in the first half of 2020. There is a lot of controversy around Libra: some see it as a new progressive opportunity, while others consider the project to be a threat to the traditional economy.
The idea behind Libra is to make the blockchain-backed transactions available and secure for everyone around the globe. Essentially, Facebook wants to make it as easy to move money around the world as it is to send a text message. Unlike Bitcoin, Libra creators didn’t set the goal to replace the current financial system. The Libra Association rather aims to refine the course of traditional finance.
The Libra Association is described by Facebook as an independent, not-for-profit organization based in Switzerland. From the beginning, such big names as PayPal, eBay, Spotify, Uber, Visa, and Mastercard sighed up for the project, but as Libra started meeting regulations difficulties, some of them retreated. BTCMEX reported PayPal leaving Libra earlier.
The Association’s role is to validate transactions on the Libra blockchain and to manage the reserve Libra is tied to and allocate funds to social causes, as the asset works as a stablecoin to avoid volatility. Facebook claims that although it created the Libra Association and the Libra Blockchain, once the currency is launched in 2020 the company will withdraw from a leadership role and all members of the association will have equal votes in the governance of Libra.
Facebook is very likely to carry out an airdrop - handing out a small amount of the cryptocurrency for free to kick-start the ecosystem. Libra comes along with Calibra - the cryptocurrency’s native digital wallet. It will be available in Messenger, WhatsApp, and as a standalone app. Facebook claims that almost everybody with a smartphone will be able to download it!
The Libra project is still vague, as because of the lack of regulations, it’s unclear, to which countries the coin itself will be released. Currently, Libra is not “pegged” to a single fiat currency. Many are also concerned about Facebook tracking crypto payments for ad targeting. And there’s still the open question of whether Libra will ever receive the approval of financial regulators worldwide.
Please note, that the article is a part of BTCMEX Blog, the views and opinions expressed here are the contributing author’s only, and do not necessarily represent the views of the company.
Julia Bulakh for BTCMEX