At the beginning of 2018, Mark Zuckerberg said his goal for that year was to investigate and understand crypto currency and blockchain technology.
Facebook’s founder, within 6 months to develop a new crypto money to use the resources of the technology giant has created a working team. The team also benefited from a user-based system that would allow crypto money to be used around the world.
As a result of the work of the new crypto currency Libra appeared. Libra, the world’s largest companies, such as PayPal, Mastercard and Visa has received the support of financial institutions.
This crypto currency holds the potential to hit an entire financial sector and offers Facebook a billion-dollar opportunity to increase its power even further. Will Facebook be able to create a new global currency that will dominate the market as it transforms the Internet?
Banks to be afraid, not Bitcoin
Even though Bitcoin uses similar technologies, Libra wants to move beyond the crypto currency area. The creators of Libra hope that the point reached by Facebook and its applications will turn Libra into a global currency that can compete with the US dollar and traditional financial infrastructure.
George McDonaugh, co-founder of Blockchain investment company KR1, said: “Facebook is primarily trying to create a stable currency that can be used to pay all over the world through social networks. Consider the functionality of the current Wechat, Venmo and PayPal. Instead of transferring pounds and dollars, users will buy and sell Facebook’s Libra” said.
Facebook has more than two billion people worldwide and Facebook’s WhatsApp has about 1.5 billion users. Combining this huge user base with the huge amount of information and data that Facebook receives from its users, Libra can go far beyond what bitcoin and other crypto currencies can do.
McDonaugh said, kon Facebook’s Libra will not compete with bitcoin. Because open, unlimited and fixed bitcoin does not require permission, does not allow censorship, and can be verified publicly. Facebook’s Libra is not the case. Because Facebook is a company and has to exist within the jurisdiction and comply with these rules. So, if you don’t have to worry about bitcoin, whose pie is Facebook taking? Yes, from banks… Do you want to invest? You want a loan? Ask Zuckerberg. Need a credit card? Ask Zuckerberg. 30 percent of the world’s population uses the platform – literally – everything is a click away,” he said.
When can Libra be used?
Facebook and its partners in the Libra Association, the date of the release of crypto money has not yet announced, but the Libra is expected to be offered to users in the first half of 2020.
Those who use Facebook’s applications and services will also be able to use Libra. In addition, the company aims to reach more than 1.7 billion people who do not carry out bank transactions and do not have access to traditional financial services.
Facebook’s partners in the Libra Association include Lyft, eBay, Uber and Spotify, as well as financial companies such as Mastercard, Paypal, Stripe and Visa. With this support from organizations in different fields, Libra will probably be accepted wherever traditional payment transactions are made.
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