Undoubtedly, Facebook (a social media website) has brought up a great revolution in social media. It has been fifteen years that Facebook has been launched. Recently, Facebook has revealed to launch its own cryptocurrency and also shared their plans in detail.
Facebook has opened up its new services as it unveiled its new low-volatility cryptocurrency LIBRA, which is powered by a smart contract platform services and it is purely designed to be reliable, scalable and secure. Furthermore, Libra is governed by the one of the non-profit associations, the Libra Association based in Geneva, which aims to serve billion of people and focusing on banking the unbanked ones. At the time being, the Libra association is commencing its services on a permission block-chain. However, Libra Association has planned to transition to permission less with the passage of time.
This point also depicts their maturity that Libra Association is also issuing its security token which will be owned by them. These Security Token (STOs) are termed as Libra Investment Token. These investment tokens are the way to fund incentive programs and cover operating costs. Furthermore, the enterprises who serve as validator nodes have to make an early investment of worth $10 million in the terms of Libra Investment Tokens and they are expected to incur approximately $280,000 annual costs.
When we look at a bigger picture, we may expect that Facebook’s Cryptocurrency, LIBRA, will be having same impact as its social network. However, there is no doubt; this is one of the most remarkable tactics to date from a mainstream Fortune 100 company.
Every cryptocurrency community touts its promise to revolutionize financial amenities by bringing the borderless benefits of the global internal to money. Moreover, Facebook is betting that its Libra cryptocurrency will provide the foundations to justify he financial needs of billions of accounts.
Facebook’s impudent bid to generate a global digital currency that will encourage financial enclosure for the unbanked actually has more privacy and subsidiarity built. Instead of trying to govern Libra’s future or squash tons of cash out of it instantly, Facebook is instead playing the long-game by dragging payments into its online domain. Facebook’s VP of blockchain, David Marcus, one of the experts has explained the company’s motive and the tie-in with its core income source during a briefing at San Francisco’s historic Mint building. “If more commerce happens, then more small businesses will sell more on and off platform, and they’ll want to buy more ads on the platform so it will be good for our ads business.”
There is no doubt that today’s headlines will be valuable in driving digital currencies into the mainstream. However, Facebook and the Libra Association has an ambition plan which is far from close to being executed. It Is an open-ended query at the regulatory front that how governments and regulatory authorities will feel about their currencies which will be subjected to challenge by a non-sovereign rival.