In 2020, Facebook made its entry into the virtual currency industry. With the official introduction of Libra, a new cryptocurrency, Mark Zuckerberg shook hands with 25 leading organizations for its upcoming plan to create a simple global financial infrastructure, empowering millions of people all across the world. Amidst the intense criticism from US regulators and government, Facebook has found a way to work on the upcoming big projects associated with the Libra. The cryptocurrency has also brought its own digital wallet, “Novi,” adaptable for smartphone users.
The launch of ‘Libra’ has generated a lot of chaos in the crypto industry and even among those who do not belong to the community. To make it more clear and understandable, we have curated these 5 facts about Facebook’s Cryptocurrency Libra for our users.
1. More centralized than other cryptocurrencies
While competing with other decentralized cryptocurrencies, Libra wants to stand out differently. With an aim to grow and expand with leading players, currently, the cryptocurrency Libra will be under the responsibility of around 30 companies, including Spotify, Uber, eBay, Paypal, Mastercard, Visa, Vodafone, Lyft, and others, ensuring the transactions are secured. So, Facebook will remain one of many stakeholders without holding special privileges in making decisions concerning Libra’s direction.
2. Accessible on a Global platform
As we know, the mission of Facebook to make Libra available in as many countries as possible! According to the authorities, around 1.7 billion adults still don’t access a strong financial system or bank, so Libra believes that a new and stable cryptocurrency has come out as a solution. So, by serving those without proper access to financial infrastructure, Libra is planning to capture the market by launching the app first in Europe and U.S before taking over the rest of the world.
Another idea that will leverage Facebook’s wide ecosystem is to allow users to make transactions with Libra through a wallet known as “Novi.”
3. Can be Purchased With Fiat Currencies
Libra has introduced many valuable and feasible benefits for users For instance, the purchase policy is flexible and allows users to purchase Libra using both existing cryptocurrency and Fiat Currencies. However, the idea is enforced balancing the centralization proposed by Libra. So, in the end, it becomes easy to exchange the cryptocurrency with Dollars, Euros, or Pounds by simply using the Libra app.
4. It will be conducted on a new blockchain
Facebook has decided to go on with separate ‘Libra Blockchain’ focusing on three key requirements: security, flexibility, and scalability. The authorities aim to run the currency on a highly secure network that is simultaneously adaptable with forthcoming innovations and governances. Another vital aspect, Libra Blockchain, has to be scalable to manage billions of users’ accounts with high capacity and low latency.
5. Sharing personal information is mandatory
Libra imposes strict user verification on all new accounts. The action has been taken to protect the users and retailers against potential frauds and, importantly, comply with the anti-money laundering regulations implemented in many countries where Facebook has introduced Libra.