Libra, Facebook’s first cryptocurrency is already making the headlines right after its launch. It will allow you to make international payments via Messenger and WhatsApp securely by 2020. One of the reasons why experts are fascinated about the new cryptocurrency is it promises to facilitate financial inclusion. It will enable users from all around the world to send money and purchase products within a few seconds on a peer to peer basis. This will make transactions faster and cheaper.
Defying common cryptocurrency rules
While the exchange rate of most cryptocurrencies like Ethereum and Bitcoin is driven by demand and supply, Libra, on the other hand, is priced according to several assets and backed by reputable currencies such as the US Dollar, Euro, and Pound. That is why it is considered a stable coin that is less likely to experience volatility due to market conditions. In addition to avoiding price fluctuations, there are many more reasons why experts believe that the future is private when it comes to transactions using Libra:
Facebook has outsourced the responsibility to manage Libra to a third-party foundation called Libra Association Council. This group will consist of companies who have heavily invested in this venture of bringing Libra in the forefront. Companies like Visa, Mastercard, Uber, PayPal, and eBay are some of the names that form the backbone of this cryptocurrency. Facebook is also inviting new members to maximize the participation in the new currency so that by the time it is about to launch, users, feel safe because of the big names involved.
Facebook will take active measures to reduce money-laundering using Libra. It will obtain several verification details using an online form that users have to fill out if they want to set up their Libra wallet. This will also include uploading government-issued photo identification. Experts believe this will negate the chances of money-laundering because people will be more aware of their transactions since their photo identification is stored along with their personal details.
Systemic risk and user security
When it comes to user security, Facebook promises to bear the cost of losses due to scams and hacks from the Libra wallet. This is an initiative to attract more crypto users so that they start using Libra if they want to purchase something from Facebook. Most crypto users prefer to get more information from sites like https://top10cryptobots.com/ about the market rates of the currencies before spending, but since Libra is not as volatile as the others, they can expect to use it without a second thought.
The massive scale at which Libra will operate is jaw-dropping. With more than 2.4 billion Facebook users, you can expect what the response will be, especially if Libra comes with attractive offers. The organization is already working to meet the global regulations so that it complies with all the bodies coordinating with international banking systems.
If Facebook can ensure that they will address these issues, Libra will dominate the crypto market in the years to come. In fact, it can soon become a global currency.