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Facebook describes Libra as a "global financial and monetary infrastructure". In other words, Libra is a digital asset built by Facebook, based on a blockchain version - the encryption technology used by Bitcoin and many other cryptocurrencies - created by the company itself.

Origin of the name Libra?

The name Libra was inspired by the Roman weighting unit (1 Libra = 0.332 kg), the Libra zodiac symbolizing justice and the meaning of "freedom" in French, according to David Marcus, former PayPal CEO, head of Facebook's virtual currency project.

According to the Guardian, the abbreviation lb of the pound unit (1 pound = 0.44536 kg) is also derived from Libra and the pound symbol of the British pound is the L in Libra is stylized.

Risks and opportunities when building a new PayPal

In cryptocurrencies, Facebook sees both threats and opportunities. They keep their promise to break the way of buying and selling by eliminating current transaction fees on credit cards. That is very dangerous for businesses advertising on Facebook because it affects the purchase and sale. If a competitor like Google or an emerging person has built a popular currency and can monitor transactions, they will know what people are buying and can focus on marketing costs on. Facebook.

Meanwhile, 1.7 billion people without a bank account can choose anyone who offers them alternative financial services, which is another thing Facebook wants.

However, existing cryptocurrencies like Bitcoin and Ethereum are not properly designed to scale up to a medium of exchange. Their unpaid prices are highly volatile and unpredictable, making it difficult for merchants to accept payments. And cryptocurrencies miss most of their potential beyond speculation unless there are enough places that will take them instead of dollars. But with Facebook's relationship with 7 million advertisers and 90 million small businesses plus the ability to experience users, it is ready to solve this problem.

Now Facebook wants to turn Libra into the development of PayPal. It hopes Libra will become simpler to set up, more popular as a more efficient, payment method with less fees, more accessible to developers, more flexible thanks to developers. longer and more through decentralization.

Success means that a person working abroad has a quick and simple way to send money back to family and a college student can pay their tuition as easily as when buying a glass. the coffee. That's going to be a big improvement today, when you're stuck in insecure Czech payments, while remittance services charge an average of 7% to send money abroad, they take about 50 billion dollars from annual users. Libra can also offer small micro transactions that cost only a few cents, which is not possible with credit cards when fees are always attached.

It cannot be ignored globally because consumers consider it too much trouble for too little benefit, or too unfamiliar and limited use to draw them into the modern financial context.

Move was created to make writing blockchain code easier according to the author's intention without giving an error. It is called Move because its main function is to move Libra money from one account to another and never accidentally duplicate those assets. The core transaction code looks like the procedure LibraAccount.pay_from_sender (receive_address, amount).

Use Libra - Calibra

The beauty of this form is that it costs almost nothing, and is extremely fast. If you transfer money via a bank, there is a small fee. This is the point that banks will have to worry if Facebook succeeds with Libra. As for the user, you are the beneficiary.

In a statement, the Libra Association suggested it would weather the departures.

"Although the makeup of the association members may grow and change over time, the design principle of Libra's governance and technology, along with the open nature of this project ensures the Libra payment network will remain resilient," Dante Disparte, the Libra Association's head of policy and communication, said in a statement.

The most Libra Facebook ambitious aspect of the stablecoin may be its potential to tie the global financial system together through a single crypto asset. Laura McCracken, Facebook's head of financial services and payment partnerships for Northern Europe, first told a German business magazine that Libra won't be tied to any single fiat currency, but will be linked to multiple currencies to prevent volatility.

It'll also mean a lot more financial lobbying for Facebook, which is already dealing with multiple inquiries and regular calls for the social giant to be broken up. In May, members of the Senate Banking Committee sent an open letter to Zuckerberg inquiring into how Facebook's cryptocurrency and payments system will work. Libra may ultimately be a net positive for cryptocurrency's legitimacy in financial markets and its fully realized potential for cross-border payments, but its most immediate impact may be the fallout of whatever regulations are enacted to police it.