Cryptography and the blockchain technology, in general, is causing a change to how traditional processes are now being carried out. One field that is currently being revolutionized is the area of financial transactions.
While many creators of digital currencies are looking into this field, Facebook, together with some other organizations are also looking to make radical changes to the global economy. To do this, they invented Libra.
Libra facebook was created by the combined effort and input of 28 founding associations, of which Facebook is one member. It seeks to change the way money is sent, spent, and received, by making these processes easier and more accessible; even to those who lack access to traditional banking.
Even more, it hopes that with the use of this currency, the high card maintenance and processing fees incurred when using debit/credit cards will be checked.
How libra Is Expected To Work?
This libra currency can be bought through wallet applications on mobile phones and/or from local stores where they are exchanged for traditional currency. These can then be kept in a digital wallet available on Facebook Messenger, Whatsapp, and/or standalone applications that can be downloaded on phones.
It is expected that users will be able to use these while shopping online, to pay for services like Uber, to buy tickets and even purchase coffee. It is speculated that some applications and stores will give users coin incentives for signing up and/or paying with Libra.
At any time, users can cash out from Libra. To do this, one just needs to go to a local store where they will exchange their libra for fiat currency.
Features of Libra
Libra comes with a couple of unique features. These include:
While fiat currency is subject to nation’s economic and political policies, and the worth of other cryptocurrencies is volatile as it based on factors like media and demand, among others, Libra has been made to be stable.
This stability is borne from the fact that the Libra reserve, which is heavily funded by each member of the founding association, is made up of a collection of the some of the world’s most stable international currencies; American dollar, British Pound, Euro and Yen.
The idea behind this is that even if one of these currencies changes in value, the value of the Libra remains stable. Thus conferring trust from service providers and store owners on it.
Because it is built using the blockchain technology, one of the world’s safest technologies, users can be sure that their currencies are secured.
- Mobile Friendly
All that is needed to have access to the purchase and use of this is a basic smartphone and means of internet connectivity.
Because Libra is not a fiat currency, it can be used everywhere by everyone.
With internet connectivity and a wallet, sending, spending and receiving Libra will be a fast and easy process.
Wrapping It Up
Expected to officially kick-off in the first half of 2020, Libra seeks to “reinvent money and transform the global economy”. It remains to be seen whether or not this would happen.