Facebook cryptocurrency - what is Libra and why is it needed?

Blockchain technology continues to penetrate into various spheres and this time Mark Zuckerberg himself turned his attention to them. The creator of Facebook has initiated the development of its own cryptocurrency called Libra, and this is perhaps the most discussed topic of recent days. What is this coin and what is the use of it, we will understand this article.

What is known about the Libra coin?

Today, June 18, 2019, the Facebook Libra cryptocurrency was officially announced and the project's Internet resource began its work. Such an event did not go unnoticed - the entire progressive world paid attention to it. Why is there such interest in the new product? Yes, because the cryptocurrency was created not by some noun, but by Mark Zuckerberg himself - this fact makes the coin extremely promising.

Facebook is positioning its cryptocurrency as a means of payment for people who do not have bank accounts. Anyone who has a smartphone, regardless of country of residence, will be able to use Libra for their needs. According to Mark Zuckerberg, “remittances should be as simple as sending messages.” And if initially Libra will be represented in Facebook itself and partner services, then very soon it will be easy to pay for coin purchases offline. Thus, the cryptocurrency will be focused not on speculators, but on ordinary consumers.

One of the key features of the Libra coin is that the project will not be decentralized. It will be supervised by a specially organized fund Libra Association, which includes large investors. It is known that today 28 companies have invested in the coin, in particular - Mastercard, PayPal, Visa, eBay, Coinbase and Uber. All of them contributed $ 10 to participate in the Libra Association. By the time the cryptocurrency network is launched, the number of fund participants is planned to be expanded to 000, in order to thus collect an investment amount of $ 000 billion. It is obvious that investor companies will introduce the coin into their services.

At the moment, little is known about Facebook cryptocurrency, but some information still leaked onto the network:

• Cryptocurrency will be provided with several fiat currency and low-risk securities. This does not mean that in exchange for Libra, it will be possible to receive some kind of security, just in this way, the coin will be protected from volatility and will give it value.
• Users will be able to carry out operations with the coin through the Calibra wallet, which will work both independently and integrated into instant messengers.
• The full implementation of the Libra coin in Facebook and partner services will be implemented in 2020 year.
• The network has information that special cryptomatics will be installed to work with the coin offline.
• Libra Association will not only manage the cryptocurrency reserve fund, but also fully issue coins and destroy them if necessary.
• According to available information, operations with Libra cryptocurrency will not be subject to a commission or it will be very low and will affect only sellers, and not ordinary customers.

The history of the creation of cryptocurrency from Facebook

Initially, there were more rumors and conjectures around the project than official reports. It was plainly not even known that Facebook was preparing exactly cryptocurrency, but there were assumptions that the project would be linked to the blockchain. It can even be said that the development was strictly classified and only a few months passed between the first official announcement of the creation of a crypt and the launch of the official website.

The idea of ​​developing your own cryptocurrency to Zuckerberg came much earlier, because about a year ago, former PayPal president David Marcus, who was also on the board of directors of the Coinbase cryptocurrency exchange, moved to Facebook. On the Internet, it was announced that Marcus headed a certain “secret project” and for this a group of experts from 50 people was assembled. And while everyone was wondering why Facebook was a new team, this team worked hard on the cryptocurrency Libra.

For the first time, talking about the need to create your own payment instrument in the Facebook system arose at the beginning of 2018. Zuckerberg later announced the development of a project called Facebook Coin. Closer to the summer, the unborn brainchild of Facebook was rebranded and the cryptocurrency began to be called Libra.

Why Facebook has its own cryptocurrency?

It is safe to say that cryptocurrency is not created with the goal of making money on the hype and getting a bit of fame from Bitcoin. Obviously, Zuckerberg is interested in technology, and not in earnings from the course races - as you understand from the information described above, the coin volatility will be low. The option that Zuckerberg, having a reputation and a multibillion-dollar fortune, wants to collect investment and throw investors, is excluded by itself.

It is possible that Mark Zuckerberg is building more far-reaching plans, and the Libra project is a kind of “multi-step” that will solve all Facebook problems at once. We will not exclude the fact that the social network developer has Napoleonic plans to seize the world of mobile payments. Still, Facebook already has a huge base of potential customers in the form of its users, which will easily make Libra a world leader.

Libra cryptocurrency prospects

What does the creation of a cryptocurrency by Mark Zuckerberg himself say, and even with such well-known investors who invested $ 10 in the project? About the very big prospects of a coin that in the blink of an eye can blow up the list of traditional cryptocurrencies. This is a very big event for the world of digital money, and it will not rust after the universal introduction of the coin. People who are too serious are behind the project, and the interest of investors only confirms that Pound need to expect something grand.

Mark Zuckerberg has already expressed his opinion that regulators can stand in the way of cryptocurrency. Of course, there is no clear legislation on digital money, but this does not prevent authorities in various countries from encroaching on the freedom of cryptocurrencies. Nevertheless, there is information that Zuckerberg has already met with representatives of the US Treasury, Western Union and the commodity futures commission.

Now you can observe a big rush around the Libra project, because the largest companies are ready to invest in cryptocurrency. Against this background, it is surprising that investment giants Goldman Sachs and JPMorgan did not support the Zuckerberg project. This is explained by the fact that companies themselves do not mind creating their own cryptocurrency, and the Facebook coin is a strong competitor for them.

Summarizing all the above, we note that the Libra cryptocurrency is simply obliged to blow up the world of digital money. And here we will not recall the coolness of the developers of the coin, major investments or its features. The fact that the Mark Zuckerberg family of projects brings together billions of users will make cryptocurrency popular in the blink of an eye. And if transactions with Libra are really as simple as sending a message, then it seems that cryptocurrency will not have competitors.