You’ve seen it all over the news and through the Facebook advertising service provider. Mark Zuckerberg strikes again, making waves with what he calls Libra, the future of cryptocurrency. Economists even dare to say that it ‘poses risks to global banking.’
What is Libra?
Libra, in retrospect, is Facebook’s version of bitcoin. Just like having cold, hard cash, you’ll be able to make purchases, pay bills, shop, and eat out all from the comfort of your Facebook app.
Libra made its debut on the 18th of June when major payment methods added them into their list of recognized payment partners. Libra then joined the likes of PayPal, BitCoin, PayMaya on Visa, and Mastercards’ long list of accredited associates. Expect Libra to be an E-wallet of some sort.
What is it used for?
Similar to PayPal, Libra aims to make payment and saving methods accessible for people who are unable to create bank accounts, for whatever reasons they may be.
“Success will mean that a person working abroad has a fast and simple way to send money to family back home, and a college student can pay their rent as easily as they can buy a coffee,” Facebook writes in its Libra documentation.
You can think of Libra as PayPal, but on steroids, and much more convenient.
Accessibility to cashless payment
Libra, being a product of Facebook, will slowly be integrated into Facebook’s multiple platforms. Have you ever noticed the little button in Facebook Messenger labeled, ‘Pay’? Guess you can take a hint from there.
Economic empowerment to those in financial difficulty
Libra is initially launching in America for a test drive before it’s available worldwide. Many people in America are denied bank accounts because of their financial situations. With the presence of Libra, tracking finances becomes easier. All you need to do is have a Facebook account.
Libra was designed as a decentralized platform run by many different organizations instead of just one, making the system fairer overall for anyone who chooses to use it.
Tax-Free money transfers
The cost of sending money to any part of the world is free, be it to other Libra users or third party accounts.
Questions that are yet to be answered
There are still so many questions surrounding the launch of Libra, such as how will it be regulated? When will it be available to the rest of the world? Is a cash-free world really the answer to the global economic crisis? Is advertising on Facebook the best way to get the word out? When they said they’re delaying the launch, how far are they willing to push it?
Facebook has yet to respond.
Would you be interested in the concept of a globally accepted currency?