Libra is the cryptocurrency wanted and designed by Facebook . For what reason? To ” reinvent the currency “, explains the team of Mark Zuckerberg: ” transforming the global economy. So people, everywhere, will be able to live better lives “. In light of the fact that Facebook is now made up of an immense (and growing) international community, in fact Libra was born as a currency potentially accepted all over the world, with a far greater user base than that of any other existing cryptocurrency, with a consolidated group behind it and facing an avalanche of opportunities.
By definition Libra is a “stablecoin” based on blockchain, that is a cryptocurrency whose value is statistically linked to the value of the dollar: this allows an easy change and removes the value of the currency from the ups and downs with which the cryptomoney market has cradled for some time the various Bitcoins, Ethereum and others. Stability will be guaranteed by a series of low-volatility assets , a sort of standard value that will make it possible to keep the valuation stable over time as has happened with the “gold standard” for traditional currencies.
The fact that it can be easily used on Facebook, Messenger and WhatsApp makes it a global currency with which users will have to deal with: it will facilitate the exchange of money between people, regulate the exchange of value between users and commercial activities and allow exchanges of money through digital platforms.
Thanks to Libra, therefore, it will be possible at any time to send small amounts of money to any other user: once this money is received it will be possible to manage the change, or you can reuse the credit acquired in other services or other purchases conveyed through the platform.
The blockchain at the base of Libra is of the ” permissioned ” type , that is able to validate the exchanges only after the approval of a series of central joints. This makes Libra a cryptocurrency that is very different from Bitcoin(permissionless), less free and more controlled. In reality, the Libra Association explains that it aspires to a Permissionless type system, without centralized control and validation systems, but to date a sufficiently fast, secure and scalable solution is not yet available to offer such a solution in the hands of billions of users.
The technological heart of Libra could therefore evolve in the future, to achieve a Distributed Ledger Technology that is as open as possible and more compliant with the idea of Facebook to create the most accessible currency in the world.
The presentation and management of Libra will be organized by the Libra Association, a non-profit association based in Geneva. The association will have the task of evolving the Libra Blockchain (technological base of the cryptocurrency and platform able to certify the exchange of value and the individual digital portfolios) and to manage the reserves that underlie the stablecoin. The latter is a crucial aspect, the very essence of the project in that only by being able to manage specific reserves it is possible to imagine a system that guarantees the value, transactions and savings of users.
We have joined Libra in the hope of offering the value of blockchain to billions of people around the world
Katie Haun, General Partner, Andreessen Horowitz
Facebook’s partners in this adventure include names such as PayPal, Uber, Vista and MasterCard , but also Spotify, eBay, Vodafone, Andreessen Horowitz, Coinbase, Iliad , Women’s World Banking, Kiva, Booking Holdings,, Farfetch, PayU, Mecado Pago, Creative Destruction Lab, Bison Trails, Xapo, Anchorage, Breakthrough Initiatives, Stripe, Lyft, Thrive Capital, Ribbit Capital, Union Square Ventures and Mercy Corps.
Each of these brands not only provides guarantees to the system, but also offers new markets within which the currency can circulate: this is an extremely valuable asset for a cryptocurrency that is proposed starting from a huge potential user base, from a pool of services immediately wide and therefore with all the prerogatives to determine a real positive earthquake in the field of FinTech.
The interest accrued from the money transferred to the association will first of all compensate for the costs of managing the system, therefore dividends will accrue to the companies that have invested in the project. Users will not be given any coupon because the purchase of Libre should not be considered as an investment, but as a simple currency exchange.