Facebook Libra Coin is a hot topic in recent days. Moreover, there has a lot of news and questions out there on this matter. So guys, here I am going to give you my reviews as per Facebook Libra coins. I also answer about how it works. However, the name comes along as per the Libra was a unit of weight in ancient Rome.
Basically, if you look back at this as being a historical move because, in the past, we did not see anything big ambitions in the Cryptocurrency sphere. Now, almost every person is using smartphones and wants to freedom to transfer and receive money. Facebook understands it and wants to reach those people to access their financial system.
Facebook declared in the previous day that Facebook is going to startup blockchain technology.
Approximately 1.7 billion adult people are remaining outside such of this system service. So Facebook takes a while for the financial system to give access to these 1.7 billion people. Facebook Libra coin attempting to construct the idea that they want to remove the extra fees. Moreover, they want to remove barriers for people who want to transfer money like such as wiring money or overdraft an ATM charge.
What is Libra?
Libra Coin is just like other Cryptocurrency. A digital currency that will be decentralized and peer to peer transaction system. Facebook is the mother, partner of this coin, and next year in 2020 they are going to lunch this Facebook Libra Coin. It acts to protect information and verify transactions securely over the internet.
Basically, they will be access who is using Facebook Messenger, WhatsApp who are downloading a stand-alone app. This person is allowed to access through a digital wallet. However, you can imagine with digital money and alternative Bitcoin. The whole system is based on blockchain technology.
It’s allowing people to send money over the internet namely zero fees. Moreover, people can buy things and you can cash out using Facebook’s own Calibra wallet. So in a word, the Libra coin is a digital currency. Recently they released their Testnet before lunch their blockchain in 20120. Also, they explain all about the project on their whitepaper.
Libra key Points
- Libra Association is headquartered in Geneva, Switzerland.
Calibra basically a Cryptocurrency wallet associate with Libra coin. Calibra digital wallet manages Libra coin and can be integrated with third-party wallets. Libra and Calibra are to make basic financial services.
Moreover, Calibra will be functionally able and attach with Messenger and WhatsApp. So in this way, Facebook users can enjoy sending, receive and save Facebook Libra coins just like they are sending messages.
Through Calibra, people can send coins to another user with a smartphone. However, it will be very low cost as well as fast. Also, people can buy different things like coffee, etc.
How does Libra work?
Libra acts just like a digital currency alternative for Bitcoin. Users are able to cash in their local currency and spend just like other dollars. The transaction fees are very low and it may attach your name. We will know the more details day by day. Already Facebook published more than 100 pages of documentation as per this project.
So, you can find different messages and some of the key points in their white paper about Facebook Libra coin and Calibra. Social giant network Facebook invited the funding members to collaborate financial contributions to the project. Their intention is to develop the tokens, not for profits. They say…
“If we were controlling it, very few people would want to jump on and make it theirs,” says Marcus.
They also believe that it has to be for a global open instant and low-cost money transfer system. Also, it has to be decentralized forms of governance, which means that it’s not one central entity controlling everything.
Moreover, their target is to become a global currency and design for a better financial infrastructure for the public good. Basically, they are going to be built on a reliable, scalable, and stable currency.
It’s also going to be governed by an independent association. That’s gonna assist people to evolve the financial ecosystem. So I think Facebook Libra is going to be really decentralized in many different ways. For example, governance, system, and also in this protocol, as well as now the Association is a not-for-profit.
In addition, the organization’s headquarters will be in Switzerland. So, many of us think that it is directly a Facebook coin. Basically, this is not the Facebook coin this is going to be something that Facebook’s going to be used in their platform.
Libra works like PayPal and Venmo
You can imagine with Facebook Libra Coin with PayPal and Venmo. Because people using an app to access their wallets and buy things and send and receive value. But the ambition and usability are more than PayPal and Venmo.
So to use Libra you need to have a “wallet”. Hopefully, current PayPal, Apple Pay, and other Libra association apps can be integrated into the wallet called Calibra. Though they allow different developer wallets.
Unlike Bitcoin, it is backed by a government currency system. As per their description, this coin is a similar type of Euro, USD. So you do not need to buy this coin to get 100x profit in the future.
Is it the name Facebook Libra Coin or Libra Coin?
In a word, it is a Libra coin but Facebook has a vital role. As a result, many people know it is a Facebook Libra Coin. Actually, Facebook has more than 2 billion users. Also, 7 million advertisers this them. So they force to expanded the Coin.
Libra governance body and voting power
To include in Libra association there have some requirements. So as the requirement they need a half rack of server space more than 100mbps dedicated internet server connection. Also, relabel site connectivity and reputable security.
The managing director will be selected through every organization member’s vote. Who will appoint an executive team and elect a board of five to 19 top representatives?
It is mentioned-able that Facebook and Calibra have only one voting power. In addition, Facebook permanently accesses to vote 1% of the total vote. Basically, it helps to decentralization from Facebook.
Moreover, the requirement is company have 1 billion USD market capital as well as approximately $500 million members’ funds. In addition, reach 20 million people a year.
One thing Facebook allows research organizations to develop and increase use case more flax-ability among the users. They allow universities and nonprofits organizations to work with them. And they must have at least five years experience as well as or $50 million in budget.
Libra Association recruiting founding members
To run blockchain transactions and validation on the blockchain Libra association is eligible for recruiting new funding members. There has also been an early contribution reward system to encourage fundraising.
MasterCard onboard PayPal pay your stripe and Visa which obviously is the largest you know payment processing my processing companies.
You can use the coin to purchase, bookings eBay, Facebook. Leadership roles Facebook’s going to open up their entire membership towards Facebook Libra Coin.
They’re gonna allow them to transact in the actual token itself and what’s really interesting about the blockchain tech is that they’re gonna be able to scale that using really high transaction and high capacity systems.
Facebook Libra Coin is a Stablecoin
Over the Cryptocurrency market, there are many outcomes so call “Stablecoins,” Libra is powered by a reserve by the real world assert. Consumers are able to bank deposit as well as act government small scale securities. So that it gives more stability and capability.
More than $285 billion Crypto coin trading after the market. So this is really manipulated somehow and somewhere. As a result, those attacking are in the mainstream and alternative over the commerce and finance market.
However, Libra coin could be a Stablecoin behind the social networks and go-ahead to a global payment system as well as an eCommerce platform. So here is some key question about Stablecoin
What is the big idea of the Libra coin?
Basically, the stable coin purpose is to reduce market fluctuation. For instant, stability can develop for overcoming Bitcoin and other Cryptocurrency to string value for payment and eCommerce platforms.
On the other hand, stability can come to the mainstream if the Crypto asserts has come on the market. The Crypto market is always volatile, so for buying and sell smoothly Crypto should be more useful.
Who are the Behind stable coin or major incumbent?
If you want to get a better example of a stable coin then I say it is “Tether”. Still, it is the best profile with $3.5 billion market capitalization in existence. So the better understand it is at a fraction of the total of $163 billion market capitalization.
However, the fact is Facebook Libra stable coin and it will be issued by a “crypto-native” company that is really a nascent sector. As a result, they think it is pretty hard to access mass adoption and acceptance in the real economic world.
Is Stablecoin used differently from Bitcoin?
It is pretty hard to say how digital currency use. But analyses say Bitcoin will be used as a payment system. Many Crypto enthusiasts say other Cryptocurrency use as stable coins without using the dollar.
In the last few months, we have seen a different stable coin spike in the prices. When a Bitcoin price fluctuation investor just cashes out to stable-coin. Moreover, these types of stable coins like Tether and USD Coin investors get back from the volatile market.
Facebook Libra Coin Informative Questions and Answer
When is Libra Coin coming?
A consumer can not store Facebook Libra coins directly on Facebook. As soon as the 2020 Libra coin will be public and people can find it on WhatsApp and Facebook Messenger, as well as different Libra association members.
In 2020 this coin will be available over the Libra partner and several supported apps. Moreover, multiple company wallets will be supporting this digital new Cryptocurrency.
Facebook directly does not distribute this Crypto coin. People need to store those coins in different wallets. The organization develops a virtual wallet called Calibra.
Not only user can store Libra coins in the Calibra wallet, but also they can use different apps to store their coins. For instant, WhatsApp and Facebook Messenger and will integrate Calibra wallet.
One Facebook user can send another user a Libra coin. They can transfer money to each other.
Should You have to use it?
This particular question is basically individual because you might use PayPal or Venmo. My personal opinion is yes, I will use it because I have a Facebook account. Also, I use messenger and many people are using it. Moreover, people can exchange money quickly and at almost free cost.
It will be an act just like real-world money. So it is to use-case, but not for profit investment. If you think it is pretty easy to transfer money or swap Cryptocurrency for real-world money then you could use it.
Who made Libra Coin?
Honestly, there is no supreme controller of Libra Coins. Though Facebook make a vital role, the Libra association is mainly the core controller of this coin. In addition, a 28-partner consortium of companies and foundations combined manage this organization managing board.
So the funding partner is a reputable company. As per their announcement, there have some rules and requirements to be a funding partner. Major funding partners are eBay, PayPal, Vodafone, Spotify, etc.
However, there is much-listed company includes here. Every funding company will invest $10,00,00.
How much does Facebook Libra Coin cost?
The ambition of the Libra association is to have less transfer cost. So it will be cheaper than any other traditional money transfer service. To send and receive money the cost is very low.
For microtransaction, this payment service will be more popular. So at this point, you probably have a question “how much is one Libra worth” so that answer should be somewhere around one dollar, one Euro, or one pound.
Also like other Cryptocurrency Facebook Libra coin won’t dramatically change the price. That’s why many people call it Stablecoin.
Can people invest in Libra Coin?
Like other Cryptocurrency Facebook Libra Coin not coming with an Initial coin offering system. It’s just like a stable Cryptocurrency. So the public is not interested to invest in Libra coin but will be interesting to use it.
Moreover, to be a funding partner, you need some requirements and eligibility. 10 million minimum investment as well you need have a top company ranking portfolio.