Digital Currencies are currencies that are not available in physical form and the users can only use them in digital or electronic form. As we all know that Digital Currencies are getting famous day by day, we are all well-aware of them. They are traded using computers and the internet. Some of the famous digital currencies include central bank digital currency, Facebook digital currency, and cryptocurrency. Let us discuss everything you need to know about Facebook Digital Currency Libra.
Initiative
Morgan Seller was the person who took the initiative to launch a Facebook cryptocurrency. This initiative began in 2017. The Vice President of Facebook, Marcus, became in charge of this project and 50 engineers joined this project along with Marcus. Morgan Beller, Kevil Weil, and David Marcus are the official creators of this cryptocurrency.
However, Mark Zuckerberg stated that this cryptocurrency will only be launched once it is approved by the USA regulators. Certain problems also began when many companies such as PayPal, eBay, MasterCard, Stripe, and Booking Holdings left Libra on 11th October. Libra then launched a plan that stated that rather than multiple currencies, cryptocurrency will be backed one-for-one by the US dollar.
What is Facebook Digital Currency Libra?
Facebook intends to use Libra as a low-fee global currency. If you buy the Facebook Digital Currency Libra, you can purchase any item that supports the cryptocurrency by digital transactions. The digital money will be available on your phone and you won’t have to carry physical money anywhere. Many government debt instruments and currencies back Libra. Facebook aims to use it globally. The Libra Association, a non-profit organization, will manage cryptocurrency.
How to use it?
The Cryptocurrency Wallet Applications will be used to buy and hold the cryptocurrency. The physical currencies are exchanged for these digital ones which are backed by securities to give stability to the digital currencies. Although a block technology is used in the Libra currency, only the members of the Libra Association can see the ledger transactions. Everyday transactions can be easily conducted by using Libra Currency and the stability of price is also an important factor that makes it efficient.
Benefits
Using digital currencies instead of physical ones is beneficial as it does not cost much to move money as the transferring fee is reduced by switching to digital currency. Every year families use $50 billion as a transfer fee to send money. Moreover, people don’t have to bear the risk of storing their money physically as it reduces the risk of theft as well. Developing countries are more inclined to use digital money as storing money in such nations is much riskier and people are risk-averse due to the lack of money as well as losing money in developing nations means losing all of their savings.
As cryptocurrencies are becoming more popular, we are aware that it aims to be useful for everyone as almost 1 billion people use mobile phones now so the world can easily switch to cryptocurrencies. Libra is backed by real assets which makes it different from the rest of its competitors as some of them are not backed by real assets. Its low volatility also makes it an important cryptocurrency as the majority of the currencies have a high volatility rate. Facebook aims to gain profit from this currency through advertisements.
Facebook Digital Currency Libra Release Date
Facebook Digital Currency Libra was supposed to be launched in January 2021. However, the project was delayed but will launch this year, it was confirmed by Facebook.
Once we get the green light, we will start experimenting with a small number of users and a small number of players
Now you are fully armed with the information regarding Libra cryptocurrency but if you need more facts and figures regarding it, you can check out its White Paper. In this risky world where every currency is highly volatile, Libra cryptocurrency is a safe and reliable option.
Masab Farooque is a Tech Geek, Writer, and Founder at The Panther Tech. He is also a lead game developer at 10StaticStudios.
When he is not writing, he is mostly playing video games