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Is Facebook’s Libra the counter-answer to bitcoin?

Last updated on July 26, 2019 by Dotsquares

2017-18 was all about the advent of bitcoin and how it revolutionised the concept of currency and money. While some agencies have shared a word of caution against such block-chain currency, a wider audience has accepted it as a part of the digital system. However whilst some of us “non-techies” are still becoming accustomed to bitcoin and its offerings, social media giants Facebook have announced that they have been working on a crypto-currency of their own. If the whispers from Silicon Valley are to be believed, that crypto-currency will see the light of the day somewhere in 2020. So what exactly is this crypto-currency?

 

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Facebook has partnered with a Non-Governmental Organisation (NGO) called Libra Association, which is a subsidiary of the Facebook-founded organisation called Calibra. The idea of this crypto-currency is the brain-child of a 26 year-old employee called Morgan Beller. Helmed by Beller and 10 industry professionals, Facebook worked on this crypto-currency, which today is headed by the Facebook VP, David Marcus. While Facebook has not revealed much about this crypto-currency, it has been made clear that it will be working in close contact with giants like Visa, Mastercard, PayPal and PayU.

Just like bit-coin, Libra can be redeemed for conventional money and will be used as a mode of payment. However, just like its counterpart, Libra too has received its share of criticism and detractors, even before its birth. Right from the USA president Donald Trump to the United States House Committee on Financial Services, people have voiced their concerns over such a form of currency, which lacks security for the holders, is difficult to track and increases in illegal activities.

While digital currency might be the future, it is not clear if the users are still open to such a kind of technology that might pose a peril. It is yet to be seen if Libra can maintain a fine balance (as the zodiac sign suggests). Watch this space for more updates as we keep an eye out for the latest happenings from Facebook on Libra. To join this conversation, drop us a DM on our social media handles.

Sources: One, Two, Three