“Libra” Facebook’s New Cryptocurrency
By QuantVan on Altcoin Academy
In this article, we want to know more about “Libra” and its functionality.
What Is Libra?
Libra is Facebook’s new cryptocurrency which is a simple global currency and financial infrastructure that empowers billions of people. In other words, it is a digital asset built by Facebook and powered by a new Facebook-created version of the blockchain, the encrypted technology used by bitcoin and other cryptocurrencies.
Who Is In Charge Of Libra? What Is “Libra Association”?
Libra will be serviced by a collective of companies called the “Libra Association”. It functions as what is known as a “stable coin”, pegged to existing assets like the dollar or euro.
The currency aims that it is less subject to the volatility that many cryptocurrencies experience.
Facebook has described the Libra Association as an independent, not-for-profit organization based in Switzerland. It serves two main functions:
1. to validate transactions on the Libra blockchain.
2. to manage that Libra is tied to social causes.
Besides the Association, there will be a “ Libra Association Council” , which will vote on policy and operating decisions.
Facebook claims that although it created the Association and its Blockchain, it will withdraw the leadership role once the currency is launched in 2020.therefore all members of the association will have equal votes in the governance of the currency.
Founding members of the Association include tech companies such as PayPal, E bay, Spotify, Uber and Lyft, as well as financial and venture capital firms such as Andreessen Horowitz, Thrive Capital, Visa, and Mastercard.
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The Functionalism :
Libra may become a formidable player in the rapidly growing markets for digital payments and cryptocurrencies when it enters both arenas early next year.
Because of the massive amount of active users, Libra could immediately become a major competitor to banks and payments processors. Such as Master card Inc. (MA), Visa Inc. (V), and PayPal Holdings Inc. (PYPL).
Facebook, which also owns WhatsApp and Instagram, also plans to launch its payments platform in about a dozen countries.
