What is Facebook Libra Cryptocurrency?

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Facebook gets on the cryptocurrencies bandwagon, but it is supported by a large number of companies and differentiating from the traditional ones like Bitcoin and Ethereum, do you know what Libra is and what is it? We tell you.

Facebook is present these last weeks in almost all media because of the latest idea of ​​the company Mark Zuckerberg. They are preparing their own cryptocurrency with which they intend to facilitate the benefits of the banking economy even in those places where the inhabitants do not usually have a current account.

Libra, that is the name with which they have baptized this new cryptocurrency whose characteristics are somewhat different from Bitcoin or Ethereum, because that is what it is all about, getting what they never got.

To begin with, Libra should be stable and avoid those incredible fluctuations that the other cryptoes have and that make them so unstable. For this, it will be linked to traditional currencies such as the dollar and will have many business partners who have joined this project.

Libra will not be, in principle, controlled directly by Facebook, but its dome will be called Libra Association, non-profit and whose headquarters is in Switzerland. Within the association are companies such as Uber, eBay and Spotify. Something that has aroused some criticism, against the optimism of others.

The co-founder of Facebook, Chris Hughes believes that this idea is to take away the economic power of the state and countries and give it to large corporations. Of course, Facebook defends itself from criticism by ensuring that what they seek is not to compete with the global economy, but to be part of it and provide access to the financial system where not many people have a bank account.

How will it work?

At the moment there are many doubts about this new cryptocurrency. Yes we know that to get some pounds from Facebook we could change them for euros, dollars or even yuan as we do when we go on a trip, but of course, based on a Blockchain system, we can also undermine the BFT protocol, in which It is necessary to collaborate to reach a consensus and to create blocks.

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Now, how can we use Libra? According to Facebook, both Apple Store and Google Play will be platforms that accept this new currency when it launches officially in 2020 and we can send money to anyone from Calibra.

Calibra will be our virtual portfolio where each one will keep our pounds and which we can access from a simple application on the mobile phone that will be connected to other applications such as Messenger, WhatsApp, Google Play and many more to carry out the transactions we want, such as paying a Uber, a cafe in a bar, and even public transport.

Reach everyone

The idea presented by the company of Mark Zuckerberg is that the commissions will be as low and transparent as possible, but much more information has not been given.

Among the problems that arise is the option of declaring this money in the income of each taxpayer so that the Treasury does not give us any problems. In the United States, the president of the Federal Reserve, Jerome Powell, has asked for caution when it comes to resolving the different concerns that arise.

Since its official launch is set for 2020, there is still time to gradually learn all the details surrounding this new cryptocurrency and see if Facebook gets the revolution it seems to have in mind.

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