Libra, the crypto currency announced by Facebook to be launched next year will lead to the weakening of the banking sector’s function with money transfer and shopping feature, Libra will gradually replace a bank and even change a global market 24/7. So Facebook is challenging banks with Libra.
In addition to the crypto currency Libra, Facebook would also offer a digital wallet called “Calibra” and that the crypto currency and digital wallet could be used via Facebook Messenger, WhatsApp or Calibra’s own mobile phone software. Libra will be supported by payment systems such as Mastercard and Visa, it is aimed to make savings, spending and money transfers with the service to be provided to Facebook users.
Finance experts gave the following information about the ecosystem of libra, which consists of “libra reserve”, “libra block chain” and “libra consortium”:
The Libra reserve, which will assume the duty of treasury, will be responsible for which assets will be indexed to a basket of crypto money, how much money will be circulated and removed from circulation. Libra block chain will be used to add these funds to platforms such as Facebook, Instagram, WhatsApp, and other people or institutions. will be the main backbone to be used for decentralized transaction records, purchases or purchases through smart contracts.
A consortium of 30 companies
Experts pointed out that the consortium, including 30 companies that pay $ 10 million entry fees, such as Facebook, Mastercard, Visa, Uber, Booking, Spotify, Paypal and Vodafone, will manage all of this operation. equal votes to everyone expressed in the form of fictional.
They emphasized that the high entrance fee and the fact that there are 30 companies create doubts about the decentralization of the operation and that there is intense discussions in social media about whether the libra is a technical block chain and how much of this currency will provide privacy to the users. stated that there are uncertainties.
In the event that Facebook launches the market and its usage becomes widespread, Polat touched on the effects it will have on the financial and banking sector. Libra will transfer to all parts of the world with unlimited money transfer and shopping feature will lead to weakening of the functions of the banking sector in their monopolies so far. Individuals and institutions transition to the bank, bank or credit card to be opened on the block chain wallets with Facebook and other consortium members because of the possibility of unlimited use of services.
After a while, the need for banks will diminish, so that the libra block chain will gradually replace a bank, and even beyond that, it will be the exchange unit of a 24/7 open global market, so Facebook is challenging banks with libra. not only with banks, but also with the country’s currencies. ra Especially in countries with hyperinflation, the libra can become an instrument of value protection against inflation.”
An important milestone in the history of coins
States that perceive the risks to be created by the Libra, may impose various sanctions and prohibitions, Polat, the day of the announcement of the libra, the US Senate Finance Committee Chairman Maxine Waters, the power of the dollar will weaken the power of the dollar because of the suspicion of the crypto and urged the Senate to call the project. it reminded.
Stressing that libra will be referred to as an important “milestone” in the history of crypto currency in the future, a finance expert said: “I think that a significant proportion of 2.6 billion people with Facebook, Instagram and WhatsApp subscribers will immediately start using the liber, which will be offered as an easy-to-use shopping tool.
They begin to develop their crypto currency or one of the existing crypto money or making more of cooperation’m guessing they would be swiftly included in this race. also out of the competition-induced corporate US, US-China trade war, China for reasons such as the US sanctions, Russia, Iran and even Turkey origin with the inclusion of crypto-currency initiatives in this competition, at least regionally, we may face a chaotic conjuncture that even states cannot escape.”
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