Libra cryptocurrency is the new Facebook digital money dubbed Libra which was announced on Tuesday June 18 by Facebook.
The Facebook new cryptocurrency ‘Libra’ was created to “enable a single global currency and financial infrastructure that empowers billions of people”. It will help users send and receive money on WhatsApp, Facebook Messenger and Instagram.
The Mechanism Behind Libra (How Libra Works):
Each time a user cashes in a dollar or their respective local currency, that money goes into the Libra Reserve and an equivalent value of Libra is minted and sent to that person’s Libra wallet. If someone cashes out from the Libra Association, the Libra sent out are destroyed/burned and they receive the equivalent value in their local currency back into their bank accounts. This means there will forever be 100% of the value of the Libra in circulation pegged with real world assets in the Libra Reserve.
Libra will be used alongside a custodian wallet named Calibra. Calibra will be the official wallet for sending,receiving and storing Libra Cryptocurrency. The wallet will be made available in Play Store in the future as the project progresses, according to Libra Whitepaper.
Countries Where Libra Is Available:
At the moment there is no restrictions as to where Libra will and will not be accessible. Libra is uncensored and therefore might not be restricted. Currently one will be able to access it with either a mastercard or visa card which is among Libra Association.
What is Libra Association:
Libra Association is a group of over 20 validators on Libra Network who will help maintain Libra Network and process transactions faster and easier. Significant among the group is Masturbated,Visa Card,eBay and Spotify. Libra Association is headquartered in Geneva Switzerland. The Libra Network final making decision resets with the association with Facebook as the Lead through 2019.
Is Libra Cryptocurrency Out:
Using the cryptocurrency Libra is not yet possible. The speculations so far is based on the whitepaper released about the digital money. The Libra cryptocurrency will be out in the first quarter of 2020 according the Libra Whitepaper.
What Is Calibra:
This is a regulated subsidiary created by Facebook to separate financial and social data gathering and build service on Libra Network on behalf of Facebook. Calibra will be the custodian wallet for storing, sending and receiving Libra.
With this new development Libra might end up being the world’s sovereign currency. Some organisations, regulators and governing bodies stand against the progressive development. Which they claim is a threat to the economy reserve of countries, banks and the world at large.