The lucrativeness of the online platforms and social media was an unexplored dark corner in the enormous multi-faceted room of possibilities. With the progressing times, the whole face of banking is changing and the social media platforms are exfoliating the older skin of confined ideas to a broader range of innovations.
Facebook, a social media platform that was launched back in 2004, created a lot of buzz in the subsequent years and has come a long way to the stage of an existential crisis. The platform is even now standing firm on its feet, making its way back into the game by introducing different facilities to enhance your experience. Rivals in the match kept progressing with enthralling ideas being implemented into it, while Facebook reverted at some point. But then they too took a massive leap towards revamping the interface.
One of the most recent introductions was the idea of that of digital money, which is a Facebook exclusive. Facebook presented the cryptocurrency idea back in June 2019 by putting up a bid to introduce it into the mainstream, and it is expected to be launched in early 2020.
Libra
Facebook’s own digital money has been named “Libra”, and it’s working methods have been derived from the pioneer of cryptocurrency, Bitcoin which was referred to as free currency. Libra has also incorporated the working techniques of fiat currency into it. The intention behind adding both these operating principles is to bring a cryptocurrency into the market, which would be relatively less prone to the risk of volatility. The volatility of cryptocurrency is what makes the potential users back out from that decision of investing in it.
Libra stands as a solution to this issue, as it also includes the principles of that of fiat currency which substantially reduces the volatility. Fiat currencies that are to be linked to Libra are yet to be revealed but is expected to have the large ones such as US Dollars and Euro, which always stands strong and steady with its values, almost immune to the less significant economic drops.
Libra’s potential is quite high with its vast investors and partners, unlike the contemporaries such as Bitcoin or any Altcoin. Facebook, with its renowned name, is launching Libra, already bringing millions of potential investors into the picture, which has been backed by big names like Visa, Uber, and Vodafone.
Libra aims at making their name well-rooted by bringing it to the forefront of the financial domain, and the locations where this is expected to flourish the most is in those developing countries. Countries in America and Europe have already switched on to this mode of banking, whereas many countries of Asia and Africa are yet to step into this field of the digital age. There is no denying that the people have quite some amount of apprehension towards using digital money, as the development is happening within them. Despite a few risks in the digital transactions it will emerge as the most beneficial technology for people all around the world, especially for the ones in developing countries.
In such states, the banks are scattered and are very sporadic, which makes it a perfect opening space for Libra as it assimilates the principles of both free currency and fiat currency which could appeal more to the public. Libra here resolves the issue in those countries by introducing a safer mode of money transfer of a stable currency, thereby elevating the economy. Libra also addresses the issue of expensive rates for transactions that the banks impose, by adding the feature of very low-cost to almost zero transaction charges. Visit Forex Academy to go through the recent updates in the cryptocurrency industry so that you get a clear idea of the features that distinguish Libra from the other cryptocurrencies.
Libra’s Wallet
Libra has developed a wallet for storage of digital money that is used for transactions. The wallet is named Calibra and has been designed in a way that it supports the payment and receiving of Libras, which will also have an app for itself and an interlink with Facebook and Whatsapp with an icon which would direct the users to the payment mode. Facebook is planning to keep Calibra and Libra under different systems and not to assign a blockchain mode to Calibra.
The G20 summit has plans on putting Libra’s launch into the forum, where the ideas and working principles are elaborated. An examination of Libra has been suggested by many members and is likely to be assessed in the days before the week of the G20 summit. Specific regulations on Libra have been recommended, and founders are seriously mulling over it to make their point clear and also to bring in the necessary controls.
Conclusion
Libra moving towards its launch in 2020 with every possible tweak to it, is planning to hit the market with a storm that could swoop the other cryptocurrencies. With Libras stored in Calibras, people are likely to head towards the age of complete digitality. With every new technology comes hundreds of advantages and it also suffices the needs of people. Still, it wouldn’t be a cake-walk since it would have a significant number of drawbacks, which everyone has to be aware of, and every user needs to approach cryptocurrency accordingly so that the ultimate purpose of such digital currencies is served.
