Libra has been a project developed and sponsored by Facebook together with a group of renowned global companies. It would be a way of sending money that uses blockchain technology. The main objective of this new application is to offer a digital currency with low volatility and global reach. All this on a decentralized and programmable controlled infrastructure to support a large number of transactions. This seeks to create an efficient medium of exchange for billions of people worldwide.
Facebook's currency would not be exactly the same as Bitcoin, because it will have a more stable value and its blockchain method of verification is based on a different algorithm.
How it will work?
Libra will be managed by a non-profit organization based in Switzerland. He is currently backed by Facebook and his list of founding members includes more than two dozen companies of the caliber of Ebay, Uber, Lyft, Spotify, Visa, Mastercard, PayPal, Coinbase and the venture capital fund Andreessen Horowitz. Unlike cryptocurrencies in use, Libra will be backed by a reserve of "real" assets with government endorsement through its central banks, which will guarantee its stability.
What would be the value of Libra?
A series of funds in international currencies such as the dollar and the euro are expected to be based, so they will not be subject when it works to speculative fluctuations such as those of Bitcoin.
Where are the Facebook Pounds stored?
In a virtual portfolio, a platform where each user can access their account from an app or through an internet browser. Facebook has created a subsidiary, Calibra, to manage user transactions that will also offer services. Other companies may create similar portfolios.
When will Libra work?
Facebook's intention is that it will launch in 2020, but conversations with monetary authorities around the world could delay it. In the United States and Europe there are already politicians who have asked that this initiative be studied in depth before giving it free rein. The possible use of this cryptocurrency for money laundering or the possibility of it being used to finance criminal activities of all kinds, including terrorism, are some of the concerns that those voices have expressed.
It is not yet known if the project is going to be launched with this coronavirus problem since other problems are currently focused. If there is a possibility that the project will be approved and supported by the brands that are named, I think it will be a great revolution, it remains to wait and be patient
Greetings from Argentina.
