1/ What Is LIBRA??
Libra is the Facebook team’s crypto project that is finally, not quite here. It aims is to be like Bitcoin: decentralized, global, and with minimal fees, but unlike Bitcoin, it will be a stable coin.
Libra will be fully backed by a Libra Reserve – a basket of low-volatility assets, bank deposits and government securities in currencies from stable and reputable banks.
2/ When is LIBRA??
The plan is for people to be able to use Libra coins as early as 2020, but given the landscape and skeptical governments, the project could face delays. Also, Libra has to find banks willing to accept it.
3/ Who is LIBRA?
Libra is Facebook, headed by cryptocurrency chief David Marcus, formerly of Paypal, is partnered with 27 firms, including these guys. However, new partners can apply if they meet certain requirements, such as companies that have over $1 billion market value or over $500 million customer balances, or reaching over 20 million people a year, multinational and recognized as a top 100 industry leader.
4/ How will LIBRA work?
Libra is somewhere between PayPal and Bitcoin. Like PayPal, you will be able to access it via apps, but unlike PayPal, you won’t need a bank account. Like Bitcoin, it will operate on a blockchain controlled by the Libra Association, but unlike Bitcoin, it won’t be permissionless. It is designed to handle 1,000 transactions per second and will scale to billions of accounts. Libra’s blockchain is built on Move, a new programming language.
5/ What is CALIBRA?
Calibra is Facebook’s new financial services subsidiary that promotes financial inclusion. It will provide digital wallets for people without access to traditional financial services. Initially, it will be used as a wallet to store Libra. It will be built into WhatsApp, Messenger and will have its own app.
6/ Who is LIBRA FOR?
Facebook wants all of it’s 2.5 billion users to access it via a wallet, but the more ambitious aim is to get the world’s 1.7 billion unbanked to use it, as well as people in volatile like Venezuela or those who want a counterbalance to the volatility of the crypto market. But perhaps the ultimate aim of all disruptive tech is to get everyone to use it.
7/ What can you DO WITH IT?
In short, buy things. Facebook hopes that all 27 of its partners will allow Libra to be used in exchange for their goods and services. Additionally, Facebook users can use it on its platforms and perhaps most interestingly, people in developing or volatile economies will be able to keep their savings safe.
8/ Should we be SCARED?
Maybe.!! There are the usual concerns over privacy but, so far, calls to break up Facebook have not materialized into any real legislative action, and there are still many questions surrounding whether the social media giant has become too powerful.
9/ Is this the end OF BITCOIN?
There is talk that Libra will not only be the end of Bitcoin but currency and monetary policy as we know it. That kind of talk is hyperbolic and unlikely to ever come true. Bitcoin and Libra are two very different proposals, besides the head of a blockchain at facebook, David Marcus said that the Libra Project will distance itself from Bitcoin and will share information with governments.
10/Govements and central bank’s REACTION?
Governments and central banks have reacted in a variety of ways to Libra, if they have one thing in common, it is that they are cautious.