© Aditya Rana.

Facebook Libra– The cryptocurrency which wants to re-invent money as we know

What is it?

According to Facebook, it will be of help to people who do not have access to a traditional bank or find using their financial services expensive. Their play is that unlike others, Libra will be backed by a reserve of other assets like bonds or other nations currencies for stability and governed by the ‘independent’ Libra Association. It has went as far as creating a subsidiary company– Calibra, just to look after crypto dealings and protecting user privacy. Your Facebook data will never mix with Calibra, so your Libra payments (in theory) will never be used for targeted advertisements.

Libra is built in an open source manner, so that anyone can use it on a global scale. Imagine online payments all over the globe with apps like WhatsApp, Facebook Messenger, or the Facebook app itself. Independent developers and organisations will be able to build on the infrastructure to cater to everybody’s needs. Facebook has developed a new programming language just for Libra– Move, which supposedly prioritises security and stability.

Many different companies have already invested in it to become a part of the association governing it. Some of them are: MasterCard, PayPal, Visa, eBay, Vodafone group, Spotify, Uber, Lyft.

Who is it for?

When will it be available?

What is there to be feared?

It also has been reported that the US house of representatives sent a letter to Mark Zuckerberg and his associates advising them to stop Libra’s development as they see it as competition to the US dollar, but that’s a whole different story.

Final Verdict.

References:

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