Over the past few years, the world of finance has been disrupted in an unimaginable way by cryptocurrencies and blockchain technology. Digital currencies were taken lightly by the mainstream financial community for many years, the tide is turning now.
In a recent development, social media giant Facebook has decided to enter the world of finance with its own digital currency “Lybra Coin”. The company announced the launch of its cryptocurrency in a highly anticipated announcement on Wednesday.
As is well known now, cryptocurrencies do not work like traditional currencies as there are no bills or coins that are in circulation. Activities that are performed with cryptocurrencies are enumerated in a ledger, which is called a blockchain, in crypto parlance.
To Be Launched Next Year
Facebook has christened its own cryptocurrency as Libra and according to the announcement made by the company; it is going to be launched within the first six months of 2020. With the rise of Fintech, the possibility of bringing quasi-banking services to unbanked people has become a possibility and it seems that Facebook could be going in the same direction with Libra. In this regard, the role of the easy availability of internet in most nations across the world is a major factor. Facebook has stated that any individual who has access to a smartphone and internet will be able to purchase Libra. The company believes that Libra will be extremely useful in helping millions of unbanked people from all over the payment solutions.
Moreover, the company believes that it’s pricing will be far lower than competing services. It should be noted that Facebook did not release the details about its pricing during the announcement yesterday. On its website, the company declared, “Moving money around the world should be as easy and cheap as sending a text message. No matter where you live, what you do, or how much you earn.”
Actual Fiat Currency
The entry of a global tech and media giant like Facebook into the cryptocurrency space is a major development. In addition, it also presents a worthy competitor to some of the biggest cryptocurrencies that currently exist. One of the biggest differences between Libra and most of the other cryptocurrencies is that fact that it is going to be backed by actual fiat currencies like the United States Dollar, yen and euro among others. On top of that, Libra is also going to be supported for transacting on popular payment processing services like Visa, Mastercard, and PayPal among others.
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