FACEBOOK CRYPTO CURRENCY: LIBRA

img credit

The crypto space is about to change drastically with the entrance of Facebook new crypto called Libra. There were rumors that Facebook is trying to the blockchain and the crypto space it seem to have succeeded. The news came out yesterday and they are in partnership with several tech and financial institution and are planning to add more before the launch in 2020. This is both good and bad news for crypto depending on how you look at it. The good news is that a big tech company going into crypto will highlight the advantages of cryptos and bring more people into the crypto space. The more people get to talk about crypto the more it get coverage and the more it gets popular.

The bad news is that we know what Facebook does with people data and their lack of privacy and this has been a concern. People will be careful about giving their data to a big tech that shares data with other people. For this reason Facebook formed a separate company called Calibra that will handle all the transaction outside of Facebook. Facebook will have a small stake and most of it will be given to the partners members. It has bagged some big name as partners like Mastercard, Visa, PayPal, Stripe, eBay, Uber, Lyft, Spotify, Coinbase, Xapo, Andreessen Horowitz, Union Square Ventures, Mercy Corps, and Women's World Banking, among others.

img credit

One of their main motivation is reaching the 1.7 billion unbanked people who have a Facebook account. If they succeed in getting this people to use the Libra coin it will be the biggest currency in circulation. And if they get more people to start using it will mean the world has a new coin that they can trade with and considering the partners that they have this will make trading in any country easy and one can use it to pay for almost anything without having to convert to local currencies.

We will have to wait for 2020 to see if it takes off