The social media giant, Facebook has finally revealed the details of its cryptocurrency Libra. Today the platform released its white paper explaining Libra & its testnet before a public launch in the Q1 of 2020.
Additionally, the new Libra coin will allow users to purchase things at local exchange points like grocery stores. Also, enables users to spend it using third-party wallet apps or its own Calibra wallet that will be built on WhatsApp, Messenger, & its own app. The best part is that you can transfer money to people with nearly zero fees.
“Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people.”
According to the white paper, Facebook’s global stable coin, referred as Libra cryptocurrency is built on a secure, scalable and reliable blockchain, backed by a reserve of real assets. The ecosystem will be governed by the Libra Association, a consortium of partners including Visa, MasterCard, and Uber.
Here’s a sneak peek at what the experience of using Calibra will be like:
Calibra allows users to transfer Libra to anyone via smartphone instantly with zero fees. Further, the platform hopes to offer multiple services for people and businesses, like paying bills with the push of a button, buying a cup of coffee with the scan of code or riding your local public transit without needing to carry cash or a metro pass.
The platform also assures strong protections to keep your money and information safe. However, the platform will be using the same verification and anti-fraud processes that banks and credit cards use. And have automated systems that will proactively monitor activity to detect and prevent fraudulent behaviour. Moreover, it also offers live support to help if you lose your phone or your password. Also, if someone fraudulently gains access to your account and you lose some Libra as a result, the platform shall offer you a refund.
Apparently, Facebook plans to expand the association to around 100 members by the time of Libra’s launch in the first half of 2020.
Is Libra different from other cryptocurrencies?
Although Libra exhibits similar operations as bitcoin ether and many such cryptocurrencies. But unlike these crypto assets, which are not backed by anything and swing wildly in response to speculation, Libra will be pegged to a basket of assets that will anchor its value.
However, the Libra Association not yet announced about those assets. Moreover, the platform indicated that they will include :
“Bank deposits and government securities in currencies from stable and reputable central banks.”
On the other hand, the supply of Libra will rise or shrink based on how its popularity. If people want to use Libra, the association will buy more of the underlying assets and create, or “mint,” new Libra. If people want to cash out of Libra, the association will pay them and destroy, or “burn,” the proper amount of Libra.
Facebook further notes that the software that implements the Libra blockchain. This is an open source in order to create an interoperable ecosystem of financial services and broaden inclusion.