Facebook conquered the social media arena a long time ago, and now it has set its sights on the financial market. Libra, Facebook’s upcoming cryptocurrency, will permit users to buy, sell, send, and receive money.
And in that regard, it emulates some of the newer coins on the market, especially in light of the fact that it will utilize Blockchain technology. Libra is still a unique undertaking because it will be accessible to people who use Messenger and WhatsApp.
Like its rivals in the field, Facebook will also launch an app specifically designed to maneuver Libra transactions. However, Libra is hardly an ordinary cryptocurrency.
For one thing, Facebook had to rely on the backing of 27 other organizations to bring Libra to life, including giants like MasterCard, Uber, and Visa. Each partner supposedly brought a minimum of ten million dollars to the table.
These parties are also expected to earn interest on the money that Libra users choose to hold in reserve.
On the surface, Facebook’s desire to bring financial services to more than a billion people around the world who lack bank accounts seems innocent enough.
And yet, questions have been raised about Libra’s integrity as a cryptocurrency. Traditional cryptocurrencies are attractive because they are decentralized but that won’t be the case for Libra.
The cryptocurrency will be governed by Calibra, a nonprofit organization in Switzerland that, Facebook says, will keep the social media platform and Libra separate. Facebook will be just one member among many voices with a vote in the association that controls Libra.
They have denied suggestions that Libra will offer them significant control over the world’s financial trends. Libra payments and Facebook data will never mingle. The platform will never have the opportunity to influence consumer decisions regarding the use of Libra.
Regardless of whether or not these assurances assuage the suspicious masses, cryptocurrency purists might choose to reject Libra simply because it doesn’t check all the boxes of a proper cryptocurrency.