All about Facebooks Libra Coin
Facebook launches its own cryptocurrency with the Libra Coin from 2020. However, the approach is different from other cryptocurrencies such as Bitcoin. Due to legal requirements, the cryptocurrency will now be developed under the name Libra 2.0 . Here you can find all about Facebooks Libra Coin.
Purpose of the Libra Coin
The Libra Coin is supposed to be especially interesting for Facebook users who want to send money quickly between different countries. On the one hand this is an attack on money transfer services such as WesternUnion and MoneyGram. On the other hand, some Facebook users do not have an account with a bank and can use Libra for this purpose. However, the main purpose is probably to introduce a parallel global lead currency. And above all to control them.
Libra Coin connected to FIAT currencies
The Libra Coin will be a stable coin linked to a FIAT currency basket of dollars, euros and yen. This will support the inflationary monetary policy of the central banks. This is exactly the opposite of the deflationary Bitcoin. This was invented because of the banks’ bailout crisis.
Organization behind Libra Coin
On the one hand, the currency is organised centrally. This is done by the Libra Association in Switzerland. Each member operates a node in the Libra network. These nodes then process the transactions. This means that more transactions can be processed than (approx. 1000 per second), e.g. with Bitcoin (approx. 7 per second). In order to become a member, an advance investment of 10 million US dollars is necessary. Currently these are members such as Visa, Uber, Spotify – but remarkably not a single bank. PayPal is no longer involved in this organization. Furthermore, Ebay, Mastercard, Visa and Stripe have also left the project.
In the meantime, 21 members of the Libra Association have signed the founding charter on Monday, October 14, 2019.
David Marcus is Facebook manager and the newly elected member of the board of the Libra Association.
As described above, there is a high processing speed for transactions. The transactions of the Libra Coin are also based on a blockchain, but on a central one. The software behind Libra is written in Rust and is open source. Developers can find the git repository at https://developers.libra.org/.
Subsidiary Calibra & Wallet
Libra will have its own subsidiary: Calibra. Calibra intends to provide new financial services that will enable access to and participation in the Libra network. Calibra’s first product is a digital wallet for the new global Libra currency. The wallet will be available on Facebook Messenger, WhatsApp and as its own app. The market launch is expected to take place in 2020.
After tremendous criticism by regulators after the announcement of v1.0, the Libra Association clearly takes a step towards regulators with the recent announcement, changes its concept (v2.0), and complies with many demands from regulators and central banks. More information about Understanding Libra 2.0 on medium.com.
It will be exciting to see how the project develops and becomes a global, digital lead currency. In any case, this will push the cryptoscene enormously.
See also:See also:Cryptocurrency):
- Bitcoin Minder Hardware
- Decentralized Application (DApp)
- Distributed Ledger Technology (DLT)
- Initial Bounty Offering (IBO)
- Initial Coin Offering (ICO)
- en.wikipedia.org: Libra
- theverge.com: Senators pressure Visa and Mastercard over work on Facebook’s blockchain project
- coindesk.com: Paypal might withdraw from Libra association
- ft.com: Mastercard, Visa, eBay and Stripe quit Facebook’s Libra