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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.

There are many questions raised along with many concerns about the safety, privacy and personal data of users through an application related to the financial sector on Facebook. And Facebook has reassured users by implementing strategies and technologies to prevent fraud and money laundering, the company http://obitanchain.org/vi-wallet/ will use strict authentication processes such as the process of making bank cards. and credit card (credit card) along with automated tracking systems to protect users in the most optimal way from fraud and fraud.

After that, you can shop, pay in places that accept Libra, such as paying for advertising for Facebook (of course), or going to pay for Uber if you book this car, or sign up for Spofify. ... for example, or pay for coffee, milk tea ...

You can transfer Libra money to another Facebook user, as long as the other person has an electronic wallet that accepts Libra.

Libra Association

But Facebook has its own interest in digital cash that predates Libra. The social network ran a virtual currency, called Credits, for about four years as a way to make payments on games played within Facebook. In May Zuckerberg said that sending money online should be as simple as sending photos. Libra is designed to make it easier and cheaper for people to transfer money online, which might attract new users to the social network. In his testimony on Wednesday, Zuckerberg acknowledged that having people use Libra would likely drive up the cost of advertising on Facebook, which would benefit the company.

Cryptocurrencies can make it easy to send money directly to someone. Though not private, cryptocurrencies can be pseudonymous. Some cryptocurrencies, notably bitcoin, have a cap on the number of coins that can be minted, meaning that owners of existing coins don't have to worry about the arbitrary creation of new ones.

There are a few ways to do this. One is to peg a cryptocurrency either as a fiat currency (or in Facebook's case, a basket of currencies) such as in the case of Tether, the most high-profile stablecoin until now, which is in theory pegged 1:1 to the US dollar. This turned out not to be entirely true, and Tether has dealt with a myriad of issues, from allegations of price manipulation to a loss of trust and investigations into in whether the coin was fully backed and was used to cover popular exchange Bitfinex's losses.