Face-Coin Libra Cryptocurrency
The global economy is still divided on the viability of the cryptocurrency. While the governments in some nations have accepted it as a legal form of currency, other nations question its authenticity. Though critics have raised their voice against this virtual currency, one cannot deny that all forms of cryptocurrency have the world wrapped around its fingers.
Most technological advancements see the light of day on the American soil. USA sits at the top of list of countries, where banking and credit/debit card companies make a handsome profit by charging people for their monetary transactions. But China came up with the innovative and less taxing way of sending and receiving money through the mobile applications. A financial research highlights that around $41.5 trillion was transacted through the mobile applications. At the top of this chart were apps like WeChat Pay and Alipay. The best feature of app-based financial transactions is that you need not worry about paying any handling charges.
Facebook joins the bandwagon with Libra
In recent times, there is no other social networking platform that can match up to the popularity of the Facebook. It is also used as online promotional tool by business organizations. Digital marketing experts see this platform as a potent lead generation source. Now, Mark Zuckerberg is all set to enter the cryptocurrency sector. Recently, the young Facebook CEO announced that his organization is working on the development of a new Facebook platform-based cryptocurrency. He also said that this virtual currency, named Libra will become fully operational from 2020.
Who will run the operations?
For the time being, Zuckerberg has roped in several companies, which will be jointly monitoring the development of Libra. The companies will operate as “Libra Association”. This organization will not acquire any profit from the entire development. The Libra Association will have two functions under its thumb. After the launch of Libra, the association will have to work in order to validate every Libra transaction that is made by the FB users via the app. On the other hand, the association must keep a tab on the Libra reserves in the virtual realm. Maintaining a close watch on these aspects will ensure the proper utilization of Libra. The head office of the association will be in Switzerland. However, the CEO also opined that after the establishment of the Facebook Libra Blockchain, the association will no longer remain the leader. The flow and availability of Facebook cryptocurrency will be regulated by the organization. The officials believe that this regulation will help in maintaining the much-needed balance in the virtual financial sector.
Benefits of Libra
The Facebook CEO said that Libra will be able to change the way the financial market works. Facebook enthusiasts cannot wait to get their hands on this new tech. However, the CEO has pointed out that his aim was more social welfare than financial gains. Around 1.7 billion individuals live in areas where they do not have proper banks. Thanks to internet towers, they can access their Facebook profiles. With the Facebook crypto-coin launch in the virtual arena, those 1.7 billion people no longer need to travel to banks or such other financial institutes. All they need is to download the FB application. Some experts say that it can topple the bank financial system in the countries, which recognize cryptocurrency. People will be able to trade with this virtual currency in the stock market as well.
Can Facebook users pay bills with Libra?
Zuckerberg has declared that Libra is only in its initial stages. The organization is working tirelessly to make it safe and stable. According to the top officials of Facebook, Libra is all set for a 2020 launch. However, Facebook users will have to be patient and wait till the system is completely ready to handle regular bill payment at restaurants or grocery stores. It may take a few weeks to some months. The system needs development and new technologies must be adopted to make this possible. The Facebook algorithm must also be compatible with the cryptocurrency transference. These processes will take time, but soon, Facebook users will be able to use Libra instead of normal currency notes.
Other links –