Last month, Facebook has revealed the details of its cryptocurrency, Libra. Libra will let people buy things or send money with nearly zero fees. People can cash out Libra online or at local exchange points. Moreover, they can also spend it on third-party wallet apps or Facebook own Calibra Wallet. The public launch of Libra will be in the first half of 2020. Thus, you need to know these things about Libra.
Besides, Facebook is also launching a subsidiary company also called Calibra. The subsidiary company handles its crypto dealings and protects users’ privacy. To clarify, they will try to never mingle your Libra payments with your Facebook data. Thus, it can’t be used for ad targeting. Your real identity won’t connect to your publicly visible transactions.
However, Facebook and other founding members of the Libra Association will earn interest on the money users cash in that is held in reserve. They do that to keep the value of Libra stable.
Therefore, once they launch Libra, they can significantly change the world’s economy.
Also read: Will Libra Help or Hurt Crypto Industry?
1. What can Libra do?
Facebook held the promise of disrupting how things are bought and sold by eliminating transaction fees common with credit cards. Existing cryptocurrencies like Bitcoin and Ethereum weren’t properly scale to be a medium of exchange.
Their unanchored price was too high. They also have problems with unpredictable swings. Thus, merchants cannot accept them as payment.
Basically, Libra allows you to cash in local currency and cash them out whenever you want. Besides, you can also spend them like dollars without big transaction fees. On top of all, your real name will not be attached.
2. Who runs Libra?
it is the second things to know about Libra. Facebook currently has problems with getting people to trust them. Thus, they don’t wholly steer Libra. Facebook recruits companies to be the founding members of the Libra Association. The companies will have value and the governance rules of the blockchain.
Each founding member paid a minimum of $10 million to join. They can gain one vote in the Libra Association council. Besides, they are also entitled to a share (proportionate to their investment) of the dividends from interest earned on the.
Also read: Facebook: Libra is a Payment Tool, Not An Investment Tool
There are 28 companies to be the founding members of Libra. They come from payments, technology and marketplace, telecommunication, blockchain, and venture capital companies.
