Facebook being the world’s largest social media platform has more than 2 billion users worldwide. After playing on such a large scale, Facebook is now ready to launch its Cryptocurrency- Libra, which the users can use by sending digital coins to one another to purchase on Facebook and the internet.
What is the reason behind launching a new Cryptocurrency?
Facebook has been planning to develop a stable coin that is a digital currency attached to the money issued by the government, to reduce its unpredictability. Its price will remain stable, so it is also called a stable price currency. It plans to have the currency in 12 countries by the year 2020. Libra association is an autonomous group that will govern the new digital coin, and it intends to remain autonomous of the parent company Facebook Inc. It is decided that none of the group members will have any control over the currency and that they are only limited to verify the transactions and maintain the records of the cryptocurrency chain.
Libra
The new Cryptocurrency can be used on the existing social platforms like Messenger, WhatsApp, Instagram, and WeChat in China. According to the latest report from the Wall Street Journal, Silicon Valley is a group of leading companies like Visa, MasterCard, Uber, PayPal, and many others that are backing up the upcoming latest currency. Altogether 100 companies are set to capitalize USD 10 million each to raise the development of the money. The new launch is expected to open a new source of revenue generation for the company which has been struggling.
About Libra- Stable coin
Libra is nowhere near other crypto currencies like Bitcoin, etc., as it has strict rules and regulations for its action. The Libra group of association has met with the Bank of England governor, various money transfer companies along with the US Treasury officials to discuss the risks and opportunities involved in the whole venture. It would not be wrong to compare Libra with the Blockchain oriented payment methods like JPM coin and many more. The popularity of the stable coin is due to its contract compatibility and its predictability, unlike the actual currencies which are highly volatile. Also, the transaction cost, which is increasing ever since then is a reason for it is now and then in the news.
Is it a parallel economy?
Without any doubt, Facebook has already enhanced the way people communicate with each other and given a new picture of the mode of communication. The level of acceptance for Libra among the people is huge as it is a Stable coin. With the terminal similar to ATMs where people can exchange their digital currencies, they will need a large number of funds to establish the physical infrastructure. It is also believed with the incoming of stable coin more number of people will start to have faith in the digital mode of currencies. It will even prove valuable to people who are living in developing countries.
Conclusion
Soon Facebook will allow people to shop and spend money on things to their loved ones at zero fees, which is its way to reinvent the money. With support from expected financial companies, Facebook will be able to launch its new blockchain-based Cryptocurrency by 2020. Our blockchain app development company has already drawn the attention of leading firms with the successful blockchain app development. Contact our app developer for your business app now.