Everything About the Invention, Management and Control of Libra- A must know For Every Intending Investor
Libra is a cryptocurrency(Digital money) invented by facebook.inc (yet to be launched). It is designed to let the owner buy things or send money to people with nearly zero fees.
Libra owner can pseudonymously buy or cash out his or her coin online or at local exchange points like grocery stores, and spend it using interoperable third-party wallet apps or Facebook’s own Calibra wallet that will be built into WhatsApp, Messenger and its own app. Facebook has released its white paper explaining Libra and its testnet for working out the links of its blockchain system before a public launch in the first half of 2020.
It should be noted that facebook does not alone own and manage Libra but instead has only single vote just like other founding members like Uber, Visa and Andreessen Horowitz who have invested not less than $10 Million into the projects operation.
Facebook is launching a subsidiary company also called Calibra that handles its crypto dealings and protects users’ privacy by never mingling your Libra payments with your Facebook data so it can’t be used for ad targeting. Your real identity won’t be tied to your publicly visible transactions. But Facebook/Calibra and other founding members of the Association will earn interest on the money users cash in that is held in reserve to keep the value of the currency stable.
Facebook is also planning to launch a subsidiary company, Calibra that will manage the crypto dealings and protect users’ privacy by never integrating Libra Payments into the Facebook data to prevent ad targeting. However, Calibra/Facebook and other members of the Libra Association will earn interest on the money users cash in and held in reserve to maintain the stability of the currency.
Facebook contemplates making Libra the evolution of Paypal. Libra is expected to become simpler to set up, more efficient with fewer fees, long-lasting with decentralization, more flexible and accessible to individuals.
The fear that people may not trust the project compelled Facebook to unite the founding members of the association to oversee the development of token and the reserve of real-world assets. Thus Facebook came up with a governance team, known as Libra Association to gain the trust among users.
Recall that each member of the Libra Association has invested a minimum of $10 million to connect to the network and become a validator node. Also, members of the association have gained one vote and are entitled to a share of the dividends from earned interest from the reserve where users pay fiat currency to get Libra.
It should be noted that in view of Facebook’s desire to reach 100 founding members, there is still room for anyone who wants to become one of the founding members of Libra subject to the said person meeting the requirements.
Requirements To be met to join the Association?
- Must have a half rack of server space.
- Internet connection of 100 Mbps or above.
- Must reach 20 million people every year and/or be recognized as a top industry leader by a group like the S&P or Interbrand Global.
- Must have enterprise-grade security and a full-time site reliability engineer.
- Must have $500 billion in customer balances and hit two of three thresholds of a $1 billion USD market value.
The association will be responsible for fundraising to kick off the ecosystem, performing social impact grants and creating incentive programs to reward early adopters. Each member within the association will get 1% of total votes or only one vote, providing a level of decentralization that protects the ecosystem against anyone hijacking Libra for their own profits.
Just like Dollar with the symbol $ and Pounds with the symbol £, The Libra coin is represented by a Unicode character of three wavy horizontal lines, ≋.
NOTABLE FACTS ABOUT LIBRA CURRENCY
- It is a cryptocurrency invented by Facebook
- Facebook does not have absolute control and management of Libra. To gain the trust of users, facebook develop a team called Libra Association involving different interested members like Visa,Uber and Andreessen Horowitz who have contributed not less than $10 million and thus have one vote each in the management and control .
- Users shall be able to exchange fiat currency into these digital currencies and use them in online transactions.
- The currency is pegged to government issued currencies such as USD, EUR, SGD, etc and this assures its stability in value.
- Facebook is planning to very soon install ATM terminals to enable users/owners of Libra access and manage their currency and also have shopping outlets accepting Libra as a means of payment.
- It is predicted that the popularity and acceptability of Libra will far outweigh that of Bitcoin.
- Unlike other cryptocurrencies, Libra is not decentralized.
It should be clearly pointed out that to be able to obtain the Libra coin, users have to have access to a bank to facilitate the exchange of fiat currencies which means, only banked people shall have access to it.