If you thought that the popularity of cryptocurrencies is going down, then Facebook is here to change your minds. Earlier this year, the company announced its upcoming cryptocurrency— Libra. The latest project by the social media giant has everyone excited in the blockchain world with a hope that more people will start investing in them.
What is it about Libra that makes it such an interesting prospect? Let us know more about it in this post. Here are the 6 Things to Know About Facebook’s Upcoming Libra Cryptocurrency.
1. Purpose of Libra
Libra is Facebook’s pass of entering the cryptocurrency department. It is a Bitcoin-like currency which will be available to buy among the people soon.
With Libra, Facebook encourages people to make digital payments through its online currency instead of using regular banking currencies to make transactions. With a big name like FB, it is expected that a greater number of people will invest in blockchain technology and make cryptocurrencies even bigger.
2. Top Companies Backing Libra
Facebook has many top companies backing Libra. There have been no other companies like Facebook who have entered the field of online currencies ever before. Therefore, the support that FB has been gathering from the top companies all over the world is immense.
Looking at the number of people and businesses that are using guide to buy Facebook stock today, it will not be a surprise to see the same response to Libra coins when it launches.
It has already been reported that the digital coin backed by Facebook will be governed by a 28-member association with its members including the likes of Uber, Mastercard, and Visa. By the time it launches, one can expect that more companies will be investing in Libra.
3. Calibra Wallet
Another interesting news that came out of the announcement of Libra, is its digital wallet that will be called Calibra. The wallet application by Facebook will be available on different mobile platforms.
Facebook wants to provide a channel through Calibra from where people can buy Libra currency with the help of banking transactions. The company also intends to provide arrangements where people can buy their currency with cash at selected stores.
4. How Secure will Libra Be?
Like every other cryptocurrency, Libra too will work on blockchain technology. Experts consider blockchain as highly secure and there are little to no chances of digital coins being hacked under this tech.
Despite the high assurance of security of its cryptocurrency, Facebook has also mentioned that it is looking for ways to come up with policies where users will be refunded with their lost money in case of any frauds that they come across.
5. When Can You Start Buying Libra Coins?
Facebook expects to launch the much-awaited Libra coins in the first half of next year. Although the company remains hopeful of its new venture, there has been some resistance to it by regulators.
The company has already faced the heat throughout the antitrust investigation, and it wouldn’t want to get in any more trouble after it. Facebook has said that they won’t launch Libra until the regulators are happy with it. So, people may have to see a delay and at worst not hear of Libra at all in the future.
6. Will Libra Change the Way Governments See Cryptocurrencies?
Governments of most countries have made it clear about their lack of support for cryptocurrencies. The anonymity with the selling and purchasing of cryptocurrencies is an issue that keeps from administrations from supporting it. Activities, like buying illegal drugs and using digital currencies for ransomware, is also something that discourages the government from making crypto mainstream.
If Facebook manages to work with authorities on a mechanism that keeps Libra and its transactions transparent, then it may have a future as a primary currency after all. Winning the trust of agencies after the antitrust saga will not be easy for Facebook, but being the powerful conglomerate that it is, the company has all the potential to do so.