In this article of Quantvan academy, we want to know about “Facebooks New Cryptocurrency”.
What is Libra?
Libra is Facebook’s new cryptocurrency which is a simple global currency and financial infrastructure that empowers millions 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 the “Libra association“?
The “Libra Association” is a collective of companies that are going to service Libra Coin.
The currency aims that it 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 its blockchain.
2. to manage that it 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, it 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.