People living in a developed country like the USA , they think that their financial system is flawless. But there are more than 4 billion people in this world who are unbanked or underbanked. As most of these people live in a developing country and due to the problem of expensive internet, it cuts off the financial opportunities of investing and growing into broader foreign markets.
To conquer these problems, Facebook officially announced that they are going to launch the cryptocurrency Libra. It will be run by Libra Association which will be backed by more than two dozen founding partners like Facebook, PayPal,eBay, Coinbase etc.
Why is Libra unique from others?
- Libra is backed up by assets of Libra Association in order to stabilize the cryptocurrency price.
- Couple countries, which are still developing, will have a disadvantage of expensive internet, like Myanmar, Nigeria etc., so Facebook decided to offer free usage of app on over 50 mobile providers worldwide. By that, a person having access to Facebook will also have access to Libra and as its financial services.
- Libra comes with a new programming language called Move, which Facebook claims to put “Safety and Security at its highest concerns.”
- As Bitcoin at its current stage requires tremendous energy to run, Libra doesn’t have a proof-of-work algorithm so instead, it will be as easy as making small bank transactions.
How will Libra benefit common people?
Due to high tariff rates of the internet in developing or underdeveloped countries, Facebook officially announced that it will charge no money for its app usage, So the people have only had one way to use the internet or to connect with their families and relatives. And due to Libra, they will also be able to transfer money from Facebook or WhatsApp with minimal charges.
What about Privacy?
It depends, as Facebook has promised not to collect Financial data from Calibra for ad-targeting purposes. So, Only Calibra will have a record of your transactions but if you give permission of access to Facebook by features like friend-finding feature, their data will get connected.
Will Libra be Safe for investment?
The answer is YES, as most of the cryptocurrencies like Bitcoin, Ethereum etc. had a major breakthrough last year as the price of Bitcoin went spiking high to $19,166 in less than six months, profiting to about 2000% for a single bitcoin. But Libra is different than them, it’s price won’t fluctuate that much as compared to these cryptocurrencies as it is backed by the company’s real-time assets.
Where to store Libra coins and how to spend them?
As it can’t be stored physically and users need to store their cryptocurrencies in a virtual wallet. So the Company developed a wallet called Calibra. Not only will it store Virtual cryptocurrency Libra but it will also help people to transfer money to other Facebook and WhatsApp Users with minimal transfer cost.