Cryptocurrency is on its way for Facebook as the company has launched. It’s highly anticipated digital currency project. Mark Zuckerberg, the founder of Facebook, said that he wants to make sending money as simple as sending photos last year. So from his statement, it was clear that he is going to launch the cryptocurrency project soon. On this Tuesday, the company has declared the project with the name Libra. The association related to this project is also coming into existence and called a Libra association. It will manage the currency and Calibra. It will also build applications associated with the new digital currency.
Facebook is known as the world’s biggest social network. Its unveiling of virtual money is going to create history next year. This project will give a fierce competition to the bitcoin, which exists now and only virtual money project in action. Facebook has more than 2 billion users. This association with users and the company will be beneficial for the project. On the other hand, the company is having various regulatory and mishandling of data issues all over the world. But still, the company is making it’s best to get in touch and reach their users.
Facebook has launched the test version of the blockchain with its announcement. It is the technology on which the bitcoin has developed. Any developer can test this open source software to give their feedback on the code. After the complete experiment, the currency itself will be available in next year, that is 2020. From the last year, Facebook is working on the project and contacted many experts over the project. It has also created a team of outside partners and executives to work in this direction. The company’s Cryptocurrency overseen by Libra (formed of companies like PayPal, MasterCard, Visa and Uber).
The company has unveiled its project at the time when Bitcoin has touched the highest mark in the year. Currently, bitcoin has $165billion market capitalization. It is the most significant Cryptocurrency in the world which will get some competition from face book’s project next year. The digital money has got criticism over the past years, but still, bitcoin has urged to touch $9000 mark. People are more focusing on digital money due to the ease of its use.
Libra, in terms of investors, is considering a big project. Around $10 million will be invested in Libra. Various firms and telecom businesses will invest this money in the project. Libra is founded by about 28 members, which includes non-profits and companies from all over the world. Facebook is also a member of the group, which will have one equal share of the project. Mark Zuckerberg is expecting to connect and include around 100 members in the group at the currency launch in 2020. The now founding members are associated with International Financial regulations, financial needs of poor communities and the essential part that is blockchain. It will boost the use of Cryptocurrency in future.
How Libra will work
Using Libra will be as easy as using other applications. Users can access Libra in many ways, including Facebook. The company has launched a new subsidiary which will develop a wallet application for the users. By using this app, users will be able to send Libra to their friends and make purchases on facebook as well as Instagram.
Moreover, Whatsapp and messenger will be updated to send Libra in message threads as we post images or emojis. It will make it more comfortable for the users to deal with others. On the other side, retail companies will prepare applications so that their users can purchase through digital money. Also, the banks will make applications to provide loans online.
This procedure will make the use of Libra easy but still face some difficulties from the users. Well, Facebook has a large number of users who will surely help create this Cryptocurrency a big hit. But there are many issues which will come in front of people for using this digital money. Users will need to transfer money from their bank account to local money exchange for getting Libra. If they receive Libra from a friend through messenger and user want to spend it on the store without depositing back into the bank, then it is necessary that the retail store is accepting Libra. Otherwise, no purchase will be made.
A Libra count will back 1:1 which is usually uncommon in the world of Cryptocurrency. Many users of cryptocurrencies are looking for Libra. People have different opinions about this currency. Facebook is assured about connecting new users in the Cryptocurrency. But many experts are saying that it will be a difficult task to do. People will not want to transact in the money whose value will go up in seconds and can go down in a certain period. At all, using the Libra is different from the current transaction procedures.
How Facebook will protect the user’s financial data
Facebook has faced criticism in terms of the data privacy of its users. The US Senate banking committee asked Mark Zuckerberg about their policies through which they can assure about the security of financial data. Facebook send in the information that Calibra will have the power to handle the data related to Cryptocurrency. Facebook will not have access to this data and also will not pair it with the user’s social data.
The company, combined with other members, is working on connecting new users to use the technology. Experts are saying Libra tends to change the marketplace of digital money. However, it will be difficult for Facebook to manage the currency. Every country has its definition of money, and it will not easy to create global money.
We hope for the best and looking forward to the launch of money in 2020. It will be an enjoyable experience to connect with technology in this way. But it can also be hazardous if not handled correctly. Facebook is building new terms for the users and privacy of user’s data is also suspicious. What is your opinion about this new beginning of Facebook in Cryptocurrency?
Facebook to Unveil new cryptocurrency was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.