Facebook has unveiled a new cryptocurrency named Libra which is the company’s move from advertising to financial services. Facebook wants to make its Libra cryptocurrency mainstream and to be used by everyone. This will be the first time that such a move to bring digital currency to the masses has been made. With the help of Libra, Facebook wants to make its huge audience of social media users make transactions using Libra cryptocurrency and make revenue instead of just advertising revenues.
Along with the Libra cryptocurrency, Facebook also announced a not-for-profit organization named Libra Organization, aptly. This organization will look after a subsidiary from Libra named Calibra. Calibra will offer a cryptocurrency wallet for storing Libra. Also, you will be able to buy items using Libra from Calibra and also transfer money internationally. Facebook says that Calibra will also look after the “separation between social and financial data” for privacy reasons.
Apart from that, Facebook’s Libra cryptocurrency is already backed by what it calls its “corporate partners”. These partners include the likes of MasterCard, Uber, Spotify as well as PayPal. This means that Libra Cryptocurrency will not be as volatile as other digital currencies like Bitcoin. Also, the value of Libra will not fluctuate heavily as compared to Bitcoin because of it being backed by real assets.
Therefore, you can rely on Libra cryptocurrency to get returns on your investment. Facebook has also announced its plan to launch the Libra Cryptocurrency to everyone by next year. The company says that the Libra cryptocurrency will have its stand-alone app. However, it will also be available for transactions via Messenger and WhatsApp.
Facebook also says that it wants to save an estimated $25 billion “lost by migrants every year through remittance fees,”. This is why Facebook wants people to make transactions through its own Libra cryptocurrency. At the moment, industry analysts seem to be upbeat about Facebook’s new digital currency offering.