Facebook will soon announce specific plans for its own cryptocurrency i.e Libra crypto. What exactly does this mean for the crypto world?
Facebook does not want to stay behind
Facebook has been a trendsetter. More than two billion social network users are clear proof of this.
You can also see it on Instagram, which also belongs to the group of Facebook-owned websites.
Now Facebook has decided to enter the crypto field. This is potentially an extremely “bomb” novelty.
Because Zuckerberg’s firm estimates social trends, it can remain not only competitive, but also at the very top of Internet companies.
Entering the cryptocurrencies at least signals confidence that the cryptocurrencies have a future, and that is good news for the industry.
Although the release of a new crypto has not yet been officially announced, there is a lot of information about the new Libra crypto currency.
First of all, it is important to say that this is the so-called stable coin.
Where to buy Libra crypto coin ?
Facebook makes a libra coin for a simple reason. Its main goal is usefulness.
Although it is amazing for investors to be able to earn enormous profits, huge volatility is not good for practical use.
Especially merchants cannot afford to accept a currency that can lose up to 90% of its value. That’s why Facebook chooses a stable coin.
The libra crypto will be built on different currencies and will therefore have its own, specific and stable value.
It is thanks to the combination of different national currencies that the stability of the coin will be further enhanced.
If the dollar were to fall but the euro would only grow, the pound would better maintain its stability.
The libra should be covered with the libra reserve. This will basically be a fund where money will be deposited to cover the value of the libra. This results in low volatility and allegedly low inflation.
Blockchain libras will appear to be open-source, which is extremely important because Facebook makes it clear that it is willing to adhere to industry-wide standards.
Fb libra Crypto is based on two social pillars, namely open-source technology and decentralized nature of cryptos.
However, it is not yet clear how decentralization will be. Whitepaper is not announced yet and then we will be wiser. Meanwhile, it seems likely that the currency will be represented by many large corporations.
Visa, Mastercard, Spotify, Uber or Ebay
The interest of the corporate sphere is truly enormous. So many companies will work with Facebook.
- There will be payment networks such as Visa and Mastercard.
- The entertainment platform is represented by Spotify.
- Digital trading systems will be represented by Ebay or Farfetch.
- This includes Coinbase for the crypto industry or Vodafone in telecommunications.
The development and operation of libra will be supervised by the companies mentioned above.
These will form the control body of the entire blockchain.
This should bring confidence in the whole system, because although Facebook is popular, after many scandals, it does not enjoy much trust in society.
This indicates that the Pound will not be so decentralized. This system will not be able to resemble open blockchains like BTC, ETH or LTC.
Rather, it will be a very similar system on which currencies like EOS or NEO operates. NEO will be the nearest.
Transaction and block verifiers are mostly respected by corporate companies.
What can the Libra mean for cryptocurrencies?
First of all, it can be said that libra will bring huge interest. 2 billion people will suddenly be exposed (on a daily basis) to cryptouniverses.
And this is an extremely important step. While global adoption is still the music of the future, the advent of a “global currency” can open the door for millions of new investors.
For people crypto will become a normal part of their lives.
Imagine that you need to send money to your daughter for college. You don’t have to deal with bank transfers.
Simply open Messenger and send it £ 300. The ease of use will be crucial.
Facebook could thus show the future path that others will follow, as it will be pleasant to mainstream.
Price of Libra crypto currency ?
It is easy to expect that Libra will appear on cryptocurrency exchanges.
This will bring new money to the industry and will subsequently benefit crypto-currency holders.
The Libra will be a spring board for the future.
In the end, truly decentralized and independent currencies will prevail.
However, they will be paved with libra coins, which allow easy adoption of the crypto among the general population.
According to sources familiar with the situation, testnet will be launched very soon, in the coming weeks .