Facebook has officially unveiled Libra, a new cryptocurrency. And like with everything it does, Facebook has big plans for Libra.
In what probably was one of the worst kept secrets, Facebook finally announced the launch of its own cryptocurrency. Libra will look to turn cryptocurrency into the new mainstream way of shopping and spending money.
But Facebook’s ultimate goal goes far beyond: allow the 1.7 billion unbanked people across the globe to manage their finances properly for the first time.
So what’s Libra, and why is Facebook launching its own cryptocurrency such a big deal? Let’s take a look.
1. Libra Is More Centralized Than Most Cryptocurrencies
Libra is different than the usual cryptocurrency which are very decentralized. As it appears, Libra will be under the responsibility of at least 28 companies – such as Uber, Spotify or eBay – tasked with ensuring transactions are completed securely.
2. Libra Is Set To Go Global
There is no doubt that Facebook has plans to make Libra available in as many countries as possible. With an apparent interest in serving those without proper access to financial infrastructure, known as the “unbanked.”
Libra will most certainly launch in Europe and the US first, before rolling out to the rest of the world.
3. Libra Can Purchased With Fiat Currencies
Users will be able to purchase Libra using both existing cryptocurrency, but also Fiat currencies (a Fiat currency is legal tender whose value is backed by the government that issued it.) That means that anyone will be able to exchange Dollars, Euros or Pounds using the Libra app.
4. Personal Information Is Mandatory
Libra will enforce identity verification on all new accounts. This will not only protect users and retailers against fraud, it happens to comply with the anti-money laundering regulations that exist in many countries where Facebook intends to introduce Libra.
5. It Launches In 2020
Facebook’s goal is to launch its Libra blockchain in the first half of 2020. That being said, there has been no communication about when the platform will be available for users.