Libra- A new revolution in currency

Recently Facebook announce it new cryptocurrency LIBRA that will be launch in 2020.It is in the form of digital currency. It will be run by Libra Association, based in Geneva.This association is backed by more than two dozen founding partner like Facebook, MasterCard, PayPal, Uber, etc.

Why Libra?

Credit: Business Today

As per white paper released by Libra Association Libra can be used by people who don’t have credit cards and bank accounts. Basically it aims to increase Global financial inclusion. It is to enable to become global currency. By this it becomes very easy and secure way to send money just like we end text or image to our friend. Of course it is much more secure than that. One more major thing said that it charges minimal or no processing fee. Initially it is attached with messenger or whatsapp for user benefits.

How Libra differ from Bitcoin ?

Both is based on Blockchain technology. But. Libra is different from Bitcoin. The major difference is Libra is backed by reserve real assets created by its association whereas Bitcoin is the form of distributed lender which is not centralized form of transactions. The value of Libra is much more stable as compared to Bitcoin. Nevertheless the association white paper said “ we belief that collaborating and innovating with financial sector , including regulator and expert across a variety of industries, is the only way to ensure that a sustainable , secure and trusted framework underpins this new system.”

Criticism

  • Facebook’s co-founder Chris Hughes terms the digital currency frightening, he said it is the shift of power from central bank to multinational corporations.
  • Another critic said that the record of Facebook is not all good, it have the allegation of data breaching to private companies.
  • There is also major concern of money laundering and terror financing.

What is the future of Libra?

First of all Libra will stable currency. It also have backed association for determing its rules and regulations. Facebook have more than 2 billion user base, which gives a major platform to Libra for its future.

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