We’re all familiar with the term cryptocurrency, and perhaps with its nature too. Cryptocurrency itself didn’t work out as well as expected in the long term. But the concept might be put to good use by none other than Facebook.
How did the crypto hype start?
Cryptocurrency at its peak looked nothing more than a “make money quick” scheme or an electricity bill hazard. But the possibilities such a concept could bring about were left unexplored. A form of currency separate from cash or cards promises added convenience and liquidity and would be the kind of thing we see in sci-fi films. Which is probably why Facebook has decided to adopt a form of cryptocurrency.
How does Libra work?
The Libra cryptocurrency, named after the Roman unit of coin measurement is set to launch in the first half of next year. This is certainly the best-supported effort to bring cryptocurrency technology into the mainstream. As the project is backed by 27 prominent companies, the likes of MasterCard, Uber and Spotify chief among them. The currency sets itself apart from other cryptocurrencies like bitcoin by having a group of major currencies like the US Dollar and the British Pound backing it. This is sure to bring stability to its value. The major reason for the failure of Bitcoin and others in establishing themselves is the fluctuating values they experience in a short time.
Libra promises to facilitate instantaneous money transfers all over the world and fulfilling the potential the cryptocurrency concept originally had. Facebook will also launch a wallet app named Calibra for use in payments over Messenger and WhatsApp.
The Libra promise
Libra has an association of its backers dubbed the Libra association. Each member exercises equal rights over the product, so Facebook doesn’t necessarily own Libra. Different backers have also implied that they will use their expertise to help the cause in different ways. In addition to a strong group of overseers, Libra also has its value regulated by established currencies. Thus, expectations of its success are very valid. Let’s see how it goes.