Facebook announced the launch of its own blockchain cryptocurrency, Libra, in June 2019. The announcement was met with plenty of trepidation and an instant backlash, with people opposed to hat seems to be the tech giant’s next move into world domination. However, despite the negative reaction, it seems that Libra is not going anywhere. So let’s take a brief look at what Facebook’s Libra is:
Facebook’s Libra is a ‘stablecoin’:
- A stablecoin is cryptocurrency that is not as volatile as cryptocurrencies like Bitcoin and Ethereum – the values of which can change hugely in a short space of time. This stability comes from the cryptocurrency being backed by treasury-regulated units with stable values. In Libra’s case, it is backed by bank deposits and short-term US government securities.
- Volatile cryptocurrencies are great for trading – provided the volatility tends toward increasing in value more often, and to a greater degree overall, than the other way around, of course, but less so for direct payments in commerce, remuneration and other applications that need currency to maintain value on a day to day basis. ‘Stablecoins’ are intended to address this and they can be used to pay salaries and buy things at a fixed price- directly, without needing to be converted into regular currency.
Libra is a secure ‘blockchain’ cryptocurrency:
Blockchain technology offers the most secure way to store information online – and is thus the best type of platform for a secure cryptocurrency. Libra’s blockchain is a new blockchain that Facebook has created – unlike with some cryptocurrencies that use a the existing Ethereum blockchain). Facebook’s Libra blockchain has been developed by Facebook with a Swiss consortium. It’s independent and designed to work as a medium of secure and stable currency exchange across the world. Yes, Facebook is trying to get into everyone’s wallets now too!
When will Facebook’s Libra be launched?
The launch date is currently 2020…and you will be guaranteed to hear all about Facebook’s Libra blockchain, all over the global media, and in every talk show. Get your popcorn – and ponder the fact that Facebook will want you to buy all future supplies of popcorn with Libra.