Libra: Facebook’s currency (part 1)

by Salman Khan

Facebook has launched a cryptocurrency library that allows users to make international purchases or payments on Messenger and other group platforms from 2020.

Seeing the opportunity to work here, the user buys a libra and balances his currency in this Facebook digital wallet called Calibra. Identifies the user or other user as a family member, or a partner may purchase goods or services from an online retailer. In addition to Calibra, consumers can buy and sell libra through a third-party wallet or grocery store owners who are already downloading data such as local retailers.

According to Facebook, the key to the library is to facilitate rational and financial participation. This will allow millions of consumers in some parts of the world to work without a bank account because the public financial system is in denial. Transactions were also cheaper and faster, as the bank was able to send and receive the libra at the same time without need.

Existing cryptocurrencies such as Libra, Bitcoin, and Ether were designed to overcome common criticism that exchanges, value stores, and money in accounts do not meet the three main characteristics. The department argues that it is really expensive for money because it does not involve large-scale trade and does not involve the accumulation of various exchange rates, wealth, or services related to wealth and prices. 

While the exchange rate of cryptocurrencies is determined entirely by supply and demand, the price of the libra will be in line with a basket of bank reserves and short-term government bonds in popular currencies like pound, dollar and euro.

Facebook

Facebook has transferred the management of the libra to an independent institution which is called the Libra Association Council. The Geneva-based group will include representatives from companies such as Uber, Spotify, and Vodafone, as well as mainstream financial institutions such as PayPal, MasterCard, and Visa, which have made significant investments in the project. This grouping is designed to maximize participation in the new currency.

So far, the misinterpretation of statistics in Facebook’s recent history has raised concerns. While Facebook guarantees that it will exclude its users’ social and financial data, the question remains: if it has corrupted social data in the recent past. It will be? Can people’s financial data be trusted?