Facebook has step-up to enter the race of blockchain plans by confirming the launch of its in-house cryptocurrency called as ‘Libra’ by the year 2020. Facebook has announced that its cryptocurrency will be launched in the coming year along with the underlying blockchain network for its support.
Facebook Inc. has designed Libra as a type of digital currency that is backed by reserve of assets and not a speculative asset like Bitcoin. They further add that users will be able to use Libra for carrying out payments of online or offline services. As per sources, Facebook has placed Libra to be used as financial tool to transfer funds between individuals and the company is expecting Libra to be used by users of developing countries where the access to traditional banking is limited.
Facebook Inc. progressive plan for Libra is to establish it as mainstream cryptocurrency. Libra is created as a decentralized payment currency which is stable currency like US dollar. Facebook eventually perceives their cryptocurrency as an instrument with which user can buy anything and also plans that this cryptocurrency supports all kinds of financial products ranging from banking, loans and credit.
Facebook to launch Libra in 2020
Although Facebook is in the building phase of Libra but it plans to run the project by the end of 2019 and then in 2020 plans to launch the product to larger community. For the ease of overseeing the development project Facebook Inc. has established a non-profit organization Libra Association and have partnered with 27 leading partners. This partnership association involves several leading venture capital firms, crypto firms, technology service providers, telecommunication giants etc. like Mastercard, Visa, PayPal, Uber, Spotify, Vodafone and Lyft.
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Facebook Inc. as stated earlier is creating a Libra Reserve that is backed by a pool of assets and these association partners will be contributing to this Libra Reserve. The motive of creating Libra Reserve is to ensure that every unit of Libra currency is backed by something of inherent value.
Facebook Inc. executive David Marcus said in an interview with associated press,
“If you fast forward a number of years, consumers all over the world will have the ability to access the world economy,”.
Thus, many trade analysts believe that Zuckerberg is replicating the Chinese version of WeChat, which combines social networking, messaging and payments in a single app and Libra will be taking Facebook near to its goal.