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Facebook Unveils Details Of Its Cryptocurrency Libra Blockchain Launch

Facebook Unveils Details Of Its Cryptocurrency Libra Blockchain Launch
Facebook has finally announced the details of its much awaited crypto currency called Libra which can be used by Facebook users to purchase things or transfer money to people and play almost no fees for such services.
Users can buy or cash out Libra coins online or at a local exchange points such as at designated grocery stores. The coins can also be used for as money by making use of the interoperable third-party wallet apps or Facebook’s own Calibra wallet which would be created into WhatsApp, Messenger, and its own app.
A white paper the details about Libra and its testnet for working out the kinks of its blockchain system was launched by Faceboo. It is expected that the company would make a public launch of the crypto currency in the first half of 2020.
Libra would not be completely controlled by Facebook but would only have a single vote in its governance – just as would be available for other founding members of the Libra Association which includes the likes of Visa, Uber, and Andreessen Horowitz. Each of the partners has made investments of at least $10 million in to the project. The open-sourced Libra blockchain and developer platform would be promoted by the association. It would also help in signing up businesses to accept Libra as a mode of payment. 
Handling of the crypto currencies and dealings would be done by a new subsidiary company also called Calibra soon to be launched by Facebook. The new company would also help in providing protection to users’ privacy by not mixing up data about Libra payments with that of the user data of Facebook which would enable the company for ad targeting. The publicly visible transactions would not reveal the identity of the users or owner of the coins. But interest on the money users cash in that is held in reserve to keep the value of Libra stable would be earned by Facebook/Calibra and other founding members of the Libra Association.
Compared to what was being expected by analysts and crypto currency experts, there is much greater privacy and decentralization incorporated into the attempts of Facebook to create a digital currency that could help in promoting financial inclusion among the people who are still unbanked. The strategy of Facebook apparently is not to seek to control and influence the future of Libra or to generate revenues from it as soon as it is launched, but to achieve much longer term goals such as attracting and pulling payments into its online platform.
The aim of company form the crypto currency and its expectations from the tie up with its core revenue source was explained by Facebook’s VP of blockchain David Marcus who said that “if more commerce happens, then more small business will sell more on and off platform, and they’ll want to buy more ads on the platform so it will be good for our ads business.”
“Success will mean that a person working abroad has a fast and simple way to send money to family back home, and a college student can pay their rent as easily as they can buy a coffee” Facebook writes in its Libra documentation.

Christopher J. Mitchell

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