The Facebook has announced about its launch on the global digital currency by first half of the 2020 and this currency will be named as Libra. The Libra will be run by the Libra Association, which is a Geneva-based entity and it has over two dozen of founding partners which includes Facebook, Uber, MasterCard, Visa, along with the Vodafone group. Many concerns are being raised by few of the lawmakers, commentators along with the co-founder of Facebook, Chris Hughes, who is now the foremost critics of the social media network on which he has helped to create it.
A white paper similar to that of Bitcoin was released by the Libra Association with its mission stated as, Enabling a form of global and digital currency that which is simple and provides a financial infrastructure to empower billions of the people. This means that, in this world which has cheap data and the smartphones, but still about 1.7 billion adults are outside the organized financial system across the world, which is in spite of billions of them having the mobile phones and nearly half a billion are provided with the Internet access.
Importance for Global Economy
The reasons for these are many and few amongst them are the high fees, lack of access, and absence of the documentation. And Libra claims to act as a solution to this problem. The promise of Libra is the financial inclusion on a global scale.
The white paper also says, the global money should be moved around in an easy and cost-effective way and also with even more safer and secure way too, this can be done just by sending the text message or sharing a photo, irrespective of where the users live, what they do, or how much they earn.
Both the Bitcoin and Libra are based on the blockchain technology, which means it is a form of distributed ledger, which is not centralized for the transactions. These are coins are created or mined by complicated math functions which makes it almost incorruptible. Also beyond this, there are few things which are common between the Bitcoin and the Libra.
The Libra is an initiative made by the 28 influential corporate entities. While Bitcoin, which is the world’s first digital coin came into existence in 2008, and it is seen as the product with libertarian values. The founder of this Bitcoin is pseudonym Satoshi Nakamoto, whose identity still remains a mystery even today.
But Libra is going to be nothing similar to Bitcoin. The white paper says, “Its association believes that on collaborating and innovating with the financial sector, which includes regulators and few experts across a variety of large industries, it ensures a sustainable, secure and trusted framework which underpins this new system.”
How Libra will Operate in Real World :
MrBTC.org developed a beautiful infographic on Libra Coin, please check out above infographic and let us know your thoughts & your question related to this upcoming global digital economy.
Saurabh Mukhekar is a Tech Blogger from Pune, India. He is also thinker, maker, life long learner, hybrid developer, edupreneur, mover & shaker. He’s captain planet of BlogSaays and seemingly best described in rhyme.
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