Libra is a new Blockchain-based cryptocurrency which Facebook will launch in coalition with 27 other companies, its name is the Libra Association, established in Switzerland, it is a non-profit organization that will create and promote the aforementioned cryptocurrency. This, in turn, will work through Facebook-Calibra, a multiplatform online portfolio which can be used in WhatsApp, Facebook Messenger and Facebook itself; through this platform, users can make their purchases and transactions in a simple way. Currently, Facebook is working on Calibra’s platform and it is expected to be launched in 2020.
According to Josep Valor, one of the premises and promises of Facebook is that Libra will be the mainstream arrival of electronic money to the market, covering more than 1.5 billion people who do not have access to banking. Likewise, the way to make them accessible to the majority, since the arrival of Bitcoin in 2009 and its warning to change the way people make payments and the global financial structure.
Unlike bitcoin, Libra is not going to be a speculative currency, therefore, its value will be supported by some important currencies such as the US dollar, the euro, the British pound sterling and the Japanese yen.
Facebook has created Calibra as a fully independent subsidiary which will not be allowed to take data directly from Facebook without the user’s authorization. An interesting aspect that also gives credibility to this project. Libra will use the same identification methods which are used currently by banks and card issuing entities. It will also offer the ability to reimburse stolen money. Although Calibra would not stand for the end of the banks, it can mean a strong blow to those entities by not having to use them as intermediaries.
There is the possibility of establishing Libra as a fiat currency, retaining its cryptocurrency character. If Facebook manages to establish it as a midpoint where it has the freedoms of decentralization and non-dependence on banking entities, but in turn, the security and low volatility of a fiat currency, Libra could become a highly coveted currency for traders.
Nevertheless, and according to Félix Moreno, there is a possibility that governments will put pressure on the Libra association, thus, that will not become the second currency of free circulation in the countries, therefore, Libra probably ends up being “another PayPal”, more centralized and regulated, leaving behind the main idea of aforesaid association and reducing interest for traders, since it will not have that expected disruptive differentiation and will be just one more portfolio.
In conclusion, it is not possible to predict that Libra will be successful, but it is certain that it has some good arguments and the support of giant companies to be spread around the world accurately.
Las razones por las que libra, la criptomoneda de Facebook, no ganará la partida a bitcoin
In-text: (Moreno, 2019)
Moreno, F. (2019). Las razones por las que libra, la criptomoneda de Facebook, no ganará la partida a bitcoin. [online] Libre Mercado. Available at: https://www.libremercado.com/2019-06-20/las-razones-por-las-que-libra-la-criptomoneda-de-facebook-no-ganara-la-partida-a-bitcoin-1276640571/ [Accessed 8 Sep. 2019].
Facebook presenta su criptodivisa Libra, ¿cuáles son sus beneficios y riesgos?
In-text: (Facebook presenta su criptodivisa Libra, ¿cuáles son sus beneficios y riesgos?, 2019)
Facebook presenta su criptodivisa Libra, ¿cuáles son sus beneficios y riesgos?. (2019). Directed by J. Valor. CNN en Español.