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| Libra cryptocurrency |
Facebook Inc. to launch their own
cryptocurrency (a digital form of currency which work on principal of blockchain)
in year 2020 of its first half which will be run by Geneva based company named
Libra Association that has 28 co-founding companies which are
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Women’s world bank
·
Kiva
·
Booking holdings
·
Andreessen Horowitz
·
Far fetch
·
Iliad
·
MasterCard
·
Uber
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PayU
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Mercado Pago
·
Coinbase
·
PayPal
·
Creative Destruction lab
·
BisonTrails
·
Facebook | calibra
·
Xopo
·
ANCHROAGE
·
Spotify
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Ebay
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Breakthrough Initiatives
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Stripe
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Lyft
·
Visa
·
Thrive Capital
·
Ribbit Capital
·
Union Square Ventures
·
Vodafone
·
Mercy corps
These are some companies which backed the Libra. Facebook
will make the currency famous among the people through their social networking
sites Facebook and Instagram we can use this currency in the respected members
of Libra like Uber, Spotify, ebay and etc.
Libra will somewhat be like a cryptocurrency but not like
the bitcoin. As the bitcoin is decentralized and its value can fluctuate with a
major difference of current value and can a higher risk of investment. Libra on
the other hand will be of different use it is a centralized form and backed by
many big companies so the value of Libra will somewhat be constant not every
time though but if it fluctuate it will not be much major change from current
value.
The bitcoin and Libra are kind of same as there is no
printed currency and is a digital form of currency. As we discussed bitcoin isn’t
owned by anybody it is a decentralized cryptocurrency people owns this
currency. Now how people own it. In bitcoin the block chain which is produced
needs power to run or to be in operated form here comes a term crypto mining in
which a person buy a heavy specification personal computer which is then used
take power from computer’s processor and graphics card which is being consumed
by the block via internet in return the miner gets 1/1000 of bitcoin. Libra
will functional differently as the company who own will manage the currency.
Facebook will also launch a wallet called Calibra which will
be used to spend the libra money and to buy and store them like other wallet.The
Libra blockchain—like other blockchains—will provide a tamper-proof record of
transactions on the network. But, unlike Bitcoin and other public blockchains,
only authorized bodies—in this case, foundation members—will be allowed to run
a node.
The French Finance Minister, Bruno Le Maire, has called on
the Group of Seven central bank governors to “prepare a report on Facebook’s
project for their July meeting. His concerns include privacy, money laundering
and terrorism finance”.Markus Ferber, a German member of the European Parliament,
has also been saying that Facebook could become a “shadow bank” and that
regulators should be on high alert.Facebook’s co-founder Hughes, terming the
digital currency “frightening”, has said it is a shift of power from central
banks towards multinational corporations.
This raises the question of why Facebook is leading Project
Libra in the first place. Based on conversations with Facebook executives, the
company appears to see an opportunity to cut into the remittance market by
offering users an easy, low-cost way to transfer funds across borders. This project could
be expedited enormously by building the ability to transfer money—in the form
of Libra—directly into WhatsApp for many low-income people already use WhatsApp
to photograph receipts as part of a process to collect remittances from local
money changers.
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