ZoneBitcoin EditorialEveryone is already talking about it. It was talked about even when it was just a rumor. Indeed, the cryptocurrency announced by Facebook was really expected for several reasons. The fact that it is Facebook, which has more than 2 billion users worldwide is not insignificant. It will certainly be the cryptocurrency that will be the most publicized, after bitcoin.
Facebook's crypto, ultimately called Libra Coin, is planned to be active during 2020. Let's see, here, what it really is.
A cryptocurrency for the “unbanked”
You have understood, Libra is indeed a Facebook cryptocurrency, in the same way as Ripple (XRP), Stellar are cryptocurrencies. So far, nothing very special, you will tell me. In fact, it is not Facebook's purpose to invent an innovative cryptocurrency. What Facebook is seeking through this cryptocurrency is to facilitate payment by everyone, and in particular by unbanked people.
Even more, with Libra, the Facebook group also wants to position itself in the “remittance” market (money transfers from migrants to their families in developing countries). Thus Libra wants to compete with giants like Western Union or MoneyGram. That said, we know that there is African startups that facilitate money transfer and who are already dealing with this problem. Facebook's Libra will therefore not bring anything new in this direction.
Likewise, it should be remembered that for the moment the Libra crypto is part of a non-profit association. That's already a good thing for a financial behemoth like Facebook, right?
In fact, Facebook didn't really create this cryptocurrency alone. It's a truly large-scale project managed by David Marcus, who worked in the early days of Paypal. We will not be surprised to see that the sending of Libra will be done in a system similar to Paypal. As simple and functional as PayPal itself.
Pay for all services in one click with Libra
When Libras are issued, we will all be able to buy them easily, in multiple currencies. It is said that it will be possible to obtain it in cash but also at a physical point of sale. Everything will be done to facilitate – unlike current cryptocurrencies – its purchase and use.
In fact, it will be as easy to send Libra as sending messages. Again, as easy as sending money on Paypal. But, here, it will be even simpler because we can do it via Facebook Messenger and via Whatsapp.
In addition, there will be little or no transfer fees, which will further encourage people to use it. To support its popularization, Libras can be used among very large groups such as Uber, Spotify, Vodafone, Ebay or even Booking.
It is precisely these partnerships that will explode the use of Libra, we can be sure of that.
Please note that Libras will also be managed by an online wallet called Calibra. You can already register on the pre-waiting list.
Conclusion: Libra a cryptocurrency like any other?
Honestly, there are already projects going in this direction, especially African cryptocurrencies which target unbanked people. I mean that the Libra token has no specific innovation to remember.
The only thing that will really help this crypto take off is simply the fact that it comes from Facebook and therefore already has the potential for a huge future client.
Unlike bitcoin, Libra will be placed in the “stablecoin” as for example, this is already the case for Tether. This will therefore allow Libra not to be as volatile as bitcoin. This is indeed the sine qua none condition for promoting popular use of cryptocurrencies in general.
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