Facebook’s New Cryptocurrency ‘Libra’ And Its Upcoming Whitepaper. What is Libra?
Facebook’s developing cryptocurrency "Libra" has been kept secret by the social media giant with few details publicly known. However, recent reporting suggests Libra will be a multi-currency backed stablecoin used for purchases in products such as Facebook Messenger and WhatsApp with zero fees. A whitepaper will reportedly be released on June 18th 2019.
Facebook's Cryptocurrency "Libra" Explained
The last month has witnessed numerous reports featuring Facebook’s upcoming cryptocurrency, ‘Libra’.
Facebook— the social media giant with more than 2 billion users— has seemingly kept Libra under wraps, with very few clear details being made public. Numerous reports are conflicting, resulting in a clouded timeline behind Libra and its upcoming use-case.
To date, here is what we know so far.
What is Facebook's Cryptocurrency "Libra"?
In many ways, Libra is similar to other cryptocurrencies and especially stablecoins. It is built on a native blockchain and backed by a reserve of several currencies meant to mitigate the impact of price volatility. On the other hand, the new digital currency is different enough from other coins to warrant a closer look, especially now that the team has released its testnet and accompanying white paper.
According to the project’s leadership, the idea for Libra is to operate more as digital cash than the traditional speculative function most cryptocurrencies serve. To this end, Libra is designed to be easier to transact with and to offer faster throughput along with quicker validation times. Despite the similarity to fiat-pegged stablecoins, Libra is an alternative that is fundamentally and technically different — too different, some believe.
What will Facebook's Cryptocurrency "Libra" be Used for?
McCracken also detailed the primary purpose for the new currency: a stablecoin.
Instead of being backed by just one single currency however, she said the cryptocurrency would be pegged to several different currencies to prevent price fluctuations.
Libra is expected to be transferable through products such as Facebook Messenger and WhatsApp, with zero fees. The article specifically states that the name will be Libra and not GlobalCoin.
A separate source revealed Facebook is currently recruiting financial firms and merchants to help launch a payment platform. Facebook is even in talks with unspecific e-commerce companies and apps in hopes that they will accept the upcoming coin.
The social media giant has reportedly consulted with current Bank of England Governor Mark Carney, who has a strong reputation of supporting Fintech innovation. Facebook is also in talks with potential partners such as Western Union, additional banks, and brokers who can assist in facilitating the upcoming launch.
What do you think of the developments seen in Facebook’s upcoming cryptocurrency Libra? How will Libra impact the digital asset industry? We’d like to know what you think in the comments section below.