Today, exchanges are no longer done only with fiat money. It has not disappeared, but is gradually giving way to electronic currencies. It is now common to hear that a payment has been made in bitcoin or even in ethereum. Many people have an electronic wallet( [pii_email_aef67573025b785e8ee2]) that allows them to exchange money without necessarily touching a bill or a coin. Yes, technology has evolved and cryptocurrency is taking hold of our habits. It is with this in mind that the giant Facebook signed up and announced the creation of its own Libra currency. This cryptocurrency aims to facilitate monetary exchanges on WhatsApp and Facebook Messenger. What is it really? All the light is shed on this cryptocurrency in this article.
Libra, what is it?
As stated, libra is a cryptocurrency like bitcoin and all other currencies not under state or central bank control. It is therefore a decentralized currency. Libra is part of the approach of all other existing currencies, that of bringing a new way of carrying out currency exchanges. The creation of Libra was done at Facebook with a gathering of many companies.
What to do with Libra?
The launch of the libra is planned for the beginning of the year 2021. Everything is in place for the currency to emerge. However, a question remains in people’s minds. With the many cryptocurrencies already on the market, what to do with Libra? Well the libra will be used for online shopping. You will have the opportunity to have it using the different currencies that already exist. For the moment, it is not yet possible to give the exact value of a libra.
If you have dreamed of sending money to someone at the speed of a text message, libra is the cryptocurrency that allows you to make your dream come true. At least that is what emerges from all the communication around the currency. Alternatively, you can send money to someone from your bed at little or no additional cost.
You will be able to place orders and pay with libra via your smartphone. Many companies are already considering using libra on their various platforms. To achieve all this, Facebook intends to have its own payment method which is nothing other than calibra. This platform will be like Google Pay or Apple Pay. The most amazing thing about the libra is its direct integration into the Facebook Messenger and WhatsApp applications. You will be able to make purchases directly through these social networks.
Does libra have a particular advantage?
Why create a new cryptocurrency if the old ones are there and still work? It is certainly because there is an advantage behind it. Indeed, by implementing libra, Facebook wants to make transactions less expensive and instantaneous. But the libra goes further by wanting to be beneficial for people who do not have bank accounts. This is also one of the reasons around which the company focuses its project. This idea is likely to really catch on since Facebook has a large family of applications that are used across the world. There is also the ease of use of the currency.
Libra versus Bitcoin
The opposition between libra and bitcoin will be played out at the level of the volatility of the two cryptocurrencies. For what is expected in the theory, the libra will be less volatile than the bitcoin. According to what emerges, the libra will have a reserve of currency. In addition, it will be based on fairly stable currencies such as the dollar and the euro. This way of proceeding makes it possible to exchange this virtual currency at any time for real assets.
Will Facebook be involved in the management of libra?
The communications giant will not be in charge of managing libra. Although the idea came from the big boss Mark Zuckerberg, he does not intend to personally deal with this new currency. A total independence of the currency which makes it possible to reassure on the merits of this new currency. It also allows the company to restore its image after the huge scandal of 2018.
It is therefore the association libra which will be in charge of the management of the new currency. It is headquartered in Geneva and already brings together many companies around it. Facebook will also be a member of the libra association through the Calibra subsidiary. However, the company will have the same prerogatives as all the other members.
What about transaction security?
Libra will be usable via a platform. It will also be integrated into the various social networks belonging to the great Facebook family. Security issues may therefore arise. However, Facebook would like to remind you that an anti-fraud system will be well put in place to prevent inconvenience. This system will be the same as for banks and credit cards. Any attempt at fraud will be automatically foiled. In the event that you will no longer be in possession of your phone, you will be able to recover your data by live assistance. In case of hacking, you will be compensated with Siege of orgrimmar entrance.
What about personal data?
Although Facebook is not in charge of managing the libra, there are doubts regarding the personal data of users. The giant claims not to take part and to only use certain data for advertising campaigns.