Steemians :- For a long time I was thinking that I must write about cryptocurrency but because of shortage of time, I couldn,t do it. As today Iwas free,so I decided to write it. Let us start.
The Whatsapp for payments:
Libra is for everyone.Moving money around the
world should be as easy and cheap as sending a text message.”
About Libra:-
On 18 June 2019, Facebook announced its plan to launch Libra, a “stablecoin”, It was built on a tailored version of blockchain technology. It was designed to let people shop and make low-fee money transfers globally. It aimed at the masses and capturing attention at the top. Libra aims to be the first global peer-to-peer payments network. It also aims to serve the 1.6 billion people in the world who lack easy access to traditional banking. The new currency is tipped to launch in the first half of 2020.
The currency under Libra Association:-
Facebook is behind but not fully in control of Libra. The currency will operate under the Libra Association having 28 mostly private sector partners like Mastercard, Visa and Vodafone, eBay and PayPal etc etc.
In theory, each partner will hold a 1% share among 100 target investors and each must invest at least USD 10 million in the venture.
The competition with other currencies:-
Libra differentiates from bitcoin and altcoin, As a ‘stablecoin’ pegged to a basket of different currencies (US dollar (USD), British Pound (GBP), Euro (EUR), Swiss Franc (CHF), and the Japanese Yen (JPY)).
Could Libra really disrupt the global payments system? Answering the question, differnt statements appeared after Libra system widely adopting could shake the global economy and rival national banks. It is clear from Chris Hughes (a Facebook co-founder ) statement“This currency would insert a powerful new corporate layer of monetary control between central banks and individuals,”
another statement came from
Christine Lagarde, Managing Director and Chairman of the International Monetary Fund who stated “We don’t want innovation that would shake the system so much that we would lose the stability that is needed.” and similarly
Congress woman Maxine Waters, stated: “It’s not clear who those regulators will be, because the US does not have a regulatory framework for cryptocurrency.
Besides it, when Facebook chiefs hoped that the company would be able to operate without the kind of strict international regulation encountered by banks and other payments companies, they may be in for a surprise. Both the Financial Stability Board (FSB) and the Financial Conduct Authority (FSA) in the UK, have issued warnings.
What are central banks and key regulators saying?
According to them, How Facebook would be able to ensure anti-money laundering measures while protecting users’ data privacy. Global central bankers have largely refrained from regulating digital currencies, concluding that they were too small to pose a risk to the financial system. But according to Facebook’s new initiative, this position could change. The Basel-based Bank for International Settlements (BIS), has called for greater political coordination to deal with the entry into finance of major tech firms like Facebook.
Thomas Mosers says,“I think it’s an interesting development and I’m pretty relaxed about it. They have clearly indicated that they are willing to play according to the rules, they have been contacting the regulators.”
Governor of the Bank of England, Marc Carney, was also upbeat about Facebook’s plans: “Libra may substantially improve financial inclusion and dramatically lower the costs of domestic and cross border payments”. He also stresses that standards and regulations for innovations such as Libra must be adopted in advance of any launch.
Other European central banks have expressed caution. According to Reuters, several central banks have requested more details on the project and France is using its year-long presidency of the Group of Seven nations (G7) to set up a working group to evaluate the risks of currencies like Libra.
[Source](https://cashessentials.org/news/libra-coin-hype-or-game-changer/