What is the Libra crypt currency on Facebook
All about the Libra crypt currency from Facebook
Libra is a cryptomountain that the social network Facebook (created by Mark Zuckerberg) has been working on for some time and that should be launched at the end of 2020.
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The currency, based on the blocking chain like most cryptographic currencies, is backed by investments from large payment companies like Mastercard, Visa and PayPal, as well as technology giants like Uber and Spotify.
Facebook has high hopes for Libra, focusing on providing affordable and accessible financial services to the 1.7 billion unbanked people around the world.
It has created a connected portfolio (wallet, a term commonly used in the field of virtual currencies) called Novi (which replaces the initially planned Calibra) designed to manage users' encrypted transactions.
As well as a non-profit "Libra Association", composed of founding companies that have already given their support for the sum of 10 million dollars for Libra.
This is what Libra (the ever-evolving project) should be, the virtual currency of the web giant Facebook, how it will work and how people can get involved.
Libra will be accessible through Facebook Messenger, WhatsApp and a separate application.
Facebook has announced that a Libra digital wallet, in which users can store encrypted money, will be accessible through Messenger, WhatsApp and an application called Calibra, which Facebook says will be available for download through the Apple App Store and Google Play Store.
You will need a government-issued ID to set it up.
Once Libra is launched in 2020, people will have to provide official identification issued by local authorities to open an account.
Users must provide additional verification details.
But if Facebook wants Libra to remain accessible to the 1.7 billion people around the world who don't have bank accounts, you'll want to keep the amount of documentation needed to create an account.
How will users put money into their calibration portfolios?
Users will be able to convert their local currency to Pounds and then store this balance in their Calibration portfolio.
They will be able to do this electronically, converting the coins to Libra, using the Calibra application itself or third-party portfolio applications, such as Coinbase, which also offers the sale and purchase of bit or ethereal coins.
In terms of actual currency conversion, they will also be able to go to physical stores such as supermarkets or convenience stores to recharge their balance, much like people can now do with prepaid phone card packages.
The idea is that one pound is approximately the same value as one dollar, one euro or one pound so that people can find their way easily.
What can be paid with the Libra currency?
So far, Facebook has shown Libra for money transfer.
However, the Libra currency will not only be used for individual money transfers.
The Calibra website states that the first version of the application "will support peer-to-peer payments and some other means of payment, such as QR codes that can be used by small merchants to accept payments in Libra".
"Over time, there will be many more, including in-store payments, point of sale system integrations, and so on. "Point of sale systems usually refer to a cash register or a card reader.
In the long term, the idea is that the Libra currency could be integrated into the systems of Calibra's partners, such as Uber. Then you can pay for your trip as easily and quickly as a simple click.
The currency will not be fully controlled by Facebook
Facebook has created an independent "Libra Association" to govern the currency.
Facebook is one of the 28 "founding members", along with big names like MasterCard, Uber and Andreessen Horowitz. These companies paid a minimum of $10 million to join.
As a member of the association, you have one vote, which can be used to select new founding members and elect an Executive Director of the Libra Association, who will appoint a management team.
Calibra will not share any information with Facebook, unless you really want to.
Libra's default setting will be not to share any information with Facebook, and the company insists that financial data will not be used to target ads to users.
The Calibra website also states that users will not need a Facebook or WhatsApp account to register for Calibra. However, the Calibra application can ask users if they want to import contacts or profile information from Facebook.
So, what are the benefits for Facebook?
In short, more advertising revenue. Facebook expects companies on its platform to adopt the Libra, selling products to customers using the currency.
If this helps to increase sales, it is believed that this will encourage these companies to put more ads on Facebook.
However, Facebook must be careful not to lock itself into an ecosystem too closed to the risk of being accused, like Microsoft, of abusing its position and monopoly.
States, on the other hand, are not very keen on a virtual currency that could eventually compete with national currencies and give great power to Facebook and its 2.3 billion subscribers.
At a recent meeting of the G7 finance ministers of the seven most economically powerful countries in the world there was unanimity, which is rare, on the need to act and regulate the cryptographic currency of Facebook.
The pound could be used to "launder money or finance terrorism," for example, said Steven Mnuchin, the U.S. Treasury Secretary.
This reluctance expressed by the states led Facebook to revise its project since Libra should not finally be a single virtual currency but several currencies backed by stable currencies.
The objective is to avoid the substitution of unstable national currencies when inflation is high. Here are Bertrand Perez's words on this subject:
This has provoked many reactions, fears of interference with monetary policies and a violation of monetary sovereignty. So, in addition to this original pound, we are going to launch several others backed by a single currency.
We plan to start with the currencies that are already in the basket of currencies being considered, for example, one Euro pound or one dollar pound.
While waiting for the official launch of Libra, it seems that the project is likely to evolve in the face of international pressure...
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