On June 18, 2019 Facebook announced the launch of digital currency named as “Libra”. Availability of coins will be in 2020 and will create a path for billions of users to process the transaction through virtual money. According to Facebook “Libra is a global currency and financial infrastructure”. Libra is basically a digital asset built by Facebook, the currency works on the same encryption of bitcoin.
Name “Libra” is derived from a Roman Measurement of Currency (lb) which donates the sign of pound. Facebook claims to create a secure path for online transactions and also creates ease for people not having a bank account. The authenticity of the coin can be determined by the positive clearance of legislation. Crypto is the biggest source to stop illegal transactions because all transactions will be recorded by the monitory team and the money cannot be used for unfair means.
Libra will be monitored and serviced by a company named as “Libra Association” to sustain the hype of the coin and to protect from downfall. Libra Association is created by Facebook as a nonprofit organization situated in Switzerland. Association has 2 basic tasks: validation of transactions and maintenance of the coin. Libra Association is created by the collective ventures of Uber, PayPal, MasterCard, Visa, Spotify and many other household names of tech and finance.
Like other virtual money Libra will also work on blockchain technology. Blockchain is a digital history of all transactions ever happened in a cryptocurrency. Facebook is keen to provide small amounts for free to push start the ecosystem, this procedure is known as “Air Drop” in the crypto fraternity.
Usage procedure is very simple users can transfer the money through Calibra, a digital wallet, which can easily be operated with a smartphone. No district restriction is heard for the usage of the app, according to Facebook “Almost Everyone in the World with a Smartphone Can Download the App” which will generate a great user engagement around the globe. Apart from general transactions users can also avail the facility of payments to ride-hailing services and online shopping websites.
The biggest facility (which no other cryptocurrency offers) is the refund of the amount by facebook if there has been a fraud with the users. Facebook further said for security concerns “We will be using all the same verifications and anti-fraud processes that banks and credit cards use, and we will have automated systems that will proactively monitor to protect and prevent fraudulent behavior”. Said statement is a great satisfaction for the user concern for the validity and security of a coin.