Since Facebook Libra has laid out the aspects of Libra- a cryptocurrency, critics have started harping out the expected outcomes and dangers of this centralized currency system. There are thousands of rumours permeating through the world about this crypto. And! everyone is talking prudently.
Right after the official announcement of Libra, various objections and jurisdictions came into its reference.
In result: Democratic Rep. Maxine Water requested Facebook to PAUSE the development of Libra On Tuesday.
The Request Came Out Right After The Unveiling Of Libra.
Waters given the statement “Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action,”
Indeed, such a reaction is obvious from the experts. Though, the question is why Libra is being questioned by people so much. And! why everyone is questioning this endeavour of Facebook?
Well! I will explain that. But! before that, you need to understand what exactly is this cryptocurrency. So, catch up with a glimpse of LIBRA.
FACEBOOK ANNOUNCES LIBRA- A CRYPTOCURRENCY
So finally, Facebook has laid out the details of its upcoming cryptocurrency, LIBRA. Apart from numerous rumors the buzz of Libra is not experiencing any fall and rising in the market every second.
And I must say this project of Facebook deserves huge noise, as the company is planning to bring a crypto that can make people buy things or send money without even charging a transaction fee. In short, people can pseudonymously buy and cash out their Libra coins online. And, this can be achieved at local exchanges, places like grocery stores, bars and more. Altogether, it will be possible to expand the libra coins using interoperable third-party wallet app or Calibra wallet, being created by Facebook itself. This wallet will be integrated into WhatsApp and Messenger.
Actually, Facebook has released its white paper describing Libra and its testnet for working out the flaws of its blockchain system. This will all accomplish before the public launch of Libra in the first half of 2020.
Incidentally, the control of Libra won’t be only available in the hands of Facebook. Rather, Facebook will get just a single vote in its governance just like the other funding members of Libra Association. This association includes various partners including Visa, Andreessen Horowitz, and Uber. The project got the investment of at least $10 million from each party to operation the development.
The project also includes the promotion of open-sourced Libra Blockchain and a platform for development, having its own programming language
“Move”. Altogether, a signup feature for businesses that allows the acceptance of Libra for making and receiving payment. Yet, it is not enough, there shall be discounts and rewards on making payments with Libra.
Facebook is going to unravel a subsidiary company – Calibra that manages the dealing of crypto and secure the privacy of users. This performs the task by keeping data unmingled from users’ Facebook data. Thereby, the collected data is easy to use for ad targeting. In result, users’ identity will not be based on their transactions visible publicly. But! the members of funding association will earn interest on the money that users cash in. In short the money reserved to retain the value of Libra.
By now, you would have learned the basics of this crypto. Libra would be the crypto-coin that you will be able to spend like a dollar and you won’t need to pay any huge transaction fees. Altogether, your name will not link to any transaction while you cash them out.
Surely, you would have understood, why this crypto coin has been considered as a threat to the prevalent financial system. In result, this crypto will bring financial freedom and remove the dependency on other currencies.
Altogether, Facebook’s incapability of keeping users data protected is the major for Water’s discrimination, as seen in the past couple of years. Altogether they add ” While there is great promise for this new technology in fostering financial inclusion and faster payments, particularly in the developing world, we know there are many open questions as to the scope and scale of the project and how it will conform to our global financial regulatory framework,”.
He also wrote, “We need to go beyond the rumours and speculations and provide a forum to assess this project and its potential unprecedented impact on the financial system.”
Not only this !
A renowned Democrat, Senator Sherrod Brown, showed skepticism, tweeting “We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight.”
It is hard to say where this endeavour of Facebook will go. But! I have no doubt in saying Libra can affect the monetary system hugely.
There is a lot more to know about Libra, that I will discuss in another blog. Till the time, STAY TUNED with Techugo. Being a mobile app development company, we try to cover every aspect related to technologies and developments. With our team, we deliver the finest quality mobile applications. To seek app development services, get in touch with us.13