Facebook, the biggest social networking company, will announce a new payment instrument based on its crypto currency, which is rumored to be named Libra, tomorrow tomorrow June 18, 2019. According to the Wall Street Journal, the project, which has been running for approximately one year, is supported by dozens of companies big like Visa, PayPal, Uber, and Mastercard. The companies will support the Libra project by providing funds of around US $ 10 million each. In addition, the BBC reports that Facebook has requested permission from the United States (US) Ministry of Finance and the British Central Bank, the Bank of England. Reporting from The Block Crypto, the launch of Libra is the boldest thing Facebook has done in financial services, and the social media giant hopes to provide 1.7 billion adults globally outside the financial system and who do not have access to banks. traditional.
Facebook criticizes the existing blockchain, which it claims has not yet reached mainstream adoption, making it a bad solution as a store of value and exchange. Facebook believes that a collaborative, rule-abiding and regulated approach will help it overcome the obstacles that other cryptocurrency has faced. Facebook also notes that although some crypto currency projects aim to disrupt existing systems and cut rules, Facebook management believes that collaborating and innovating with the financial sector, including regulators and experts in various industries, is the only way to ensure a sustainable, secure framework , and trusted to sustain this new system. Facebook and the Libra Association have set the goal of launching the Libra Blockchain and its ecosystem to support the release in 2020.
Regarding the launch of Facebook's crypto currency payment tool, a lot of speculation has occurred in the crypto community, whether the emergence of Libra can increase the value of Bitcoin or vice versa. Reporting from Newsbtc, according to a recent tweet from Circle's chief executive Jeremy Allaire, the launch of Libra will be a "big turning point in global adoption of crypto currencies." Embedding space at a good dose he fully expected the US $ 10,000 worth of Bitcoin to mark the beginning of Crypto Summer. There are some who deny this cheerful sentiment about Libra. Peter Schiff, a prominent gold investor and economist who is leaning on libertarians, ventured to predict the latest Facebook project would be "bad news" for Bitcoin.
Schiff, who had previously debated crypto experts such as Erik Voorhees and Barry Silbert, added that Facebook would target people who do not have bank accounts in high-inflation countries (Venezuela, for example), thus threatening the biggest media that has the potential to adopt BTC . Critics of the prominent crypto currency, who favored the belief that BTC had no intrinsic value because it was no better than gold, added that Libra would likely be more stable, cheaper, and easier to use than Bitcoin. Indeed, there are reports and individuals who claim that Facebook games will charge very low fees, fast transfer times, and a good level of stability, which is not seen with Bitcoin. The new crypto currency from Facebook will be pegged to a basket of traditional currencies and possibly to other stable assets.
Social media giant Facebook may be about to drop the secrecy surrounding its in-the-works cryptocurrency.
According to a report from The Information on Wednesday, Facebook is poised to unveil the token – reportedly called GlobalCoin – to the world later in June.
GlobalCoin is apparently aimed to allow users to make transactions via the social media platform, and might also be offered to Facebook employees who want to be paid in the cryptocurrency. Facebook may further set up physical portals for users to purchase the cryptocurrency, the report said.
In addition, Facebook is reportedly inviting external parties to participate in supporting the network as nodes – though it might charge a fee as high as $10 million for the privilege.
The news comes after recent reports that Facebook has begun conversations with global payments providers, crypto industry players, as well as global regulators regarding the opportunity and regulatory issues for its crypto project.
However, it is worth noting that this currency will not be a typical cryptocurrency, but that it will become a "stable currency", whose value will be assigned to a folio of financial assets.
Nor will it be, in the manner of Bitcoin and Ethereum, completely decentralized. Instead, it will be an authorized or "closed" blockchain module, where transactions will be verified by a number of pre-selected agents. These will be provided by the Council of the Libra Association, which includes a number of non-profit financial companies and commercial companies such as MasterCard, PayPal, Coinbase and eBay. Each member had to contribute a minimum of $ 10 million to join the council, contributing $ 1,000 million to collectives for the company.
Calibra is the recently launched payment company, a subsidiary of Facebook, which should manage the currency operation. Calibra will be the portfolio to which Libra can be accessed and will be integrated into Facebook applications such as Messenger and Whatsapp, as well as in a separate application.
It represents a deviation from other payment methods on the Internet such as Paypal and Venmo, since people do not need a traditional bank account and a credit card to register.