Facebook has been in the news for many reasons this year having been involved in a number of scandals such as the Cambridge Analytica Controversy, retention of deleted video files, proliferation of fake news and russian meddling in US elections.
Nonetheless, this time, Facebook is introducing (yet again) a new product called Libra that is potentially (considering their reach and registered users) going to revolutionise the Cryptocurrency market. Libra (as it is called) was created with a mission to become a single, global currency and financial infrastructure that empowers billions of people.
Libra is built on a secure, scalable, and reliable blockchain, backed by a reserve of assets that help keep its value stable and governed by the independent Libra Association, tasked with evolving the ecosystem! Libra is a global, digitally native, reserve-backed cryptocurrency built on the foundation of blockchain technology. People will be able to send, receive, spend, and secure their money, enabling a more inclusive global financial system. The unit of currency is called Libra. The aim is to make Libra as widely accepted and as easy to use as possible to create a currency that people can use with confidence and convenience in their everyday lives. Unlike the majority of cryptocurrencies, Libra is fully backed by a reserve of real assets. A basket of currencies and assets will be held in the Libra Reserve for every Libra that is created, building trust in its intrinsic value.
Last week’s cryptocurrency peak was at almost $14,000 with Facebook announcing that it is set to create its own cryptocurrency dubbed as Libra. But as the news slowly fades so does the value of bitcoin which is now back to $10,000, almost 30% downtrend. Bitcoin as been riding the waves of highs and lows in the past months. But not everyone is ecstatic about Facebook’s announcement. Libra, as per cited by the Guardian is an attempt ‘to weaken the reach and the power of national governments.’ According to the report, the company aims to build not just a payment system similar to what Paypal or WeChat in China is already doing but it plans to create their own currency. The paper dispute what Libra backer claims which is to democratise mobile currency that will bring back economy to its people. However, as argued, introducing a new form of currency will just be another form of asset which many does not have an ability to own. ‘The most common reason people do not have a bank account is that they have nothing to put in it.’
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