Facebook is finally ready unveiled the secret of their upcoming cryptocurrency codenamed Libra. Several sources reported that Facebook may release a white paper explaining its cryptocurrency’s basics. Multiple investors were briefed on the project by Facebook were told that date sources claimed.
The Information reported that the employees who worked in the Libra project can choose to be paid by the cryptocurrency token instead of hard cash. Facebook is designing the currency as a borderless currency without any transaction fee. It will be aggressively marketed in developing nations where government-backed currencies are more volatile. One source says Facebook is targeting a 2020 formal launch of the cryptocurrency
Facebook’s cryptocurrency will main work in Facebook’s suite of including WhatsApp and Instagram. But Facebook has also plan to make it available in the physical world too. Facebook plans to offer sign-up bonuses to users in partnership with merchants, who will accept the cryptocurrency as a method of payment in store. Facebook also has the plan to launch something like ATM; The Information reported.
Facebook has a gigantic user base of 2.3 billion as of the first quarter of 2019. So Facebook has an upper hand in terms of the number of users it can target their cryptocurrency. But we also have to keep in mind Facebook’s image for privacy and security is not good at the moment. So some people may take a step backward for using Facebook’s cryptocurrency.
Facebook also understand people’s concern so they have courted dozens of financial institutions and other tech companies to join an independent foundation that will contribute capital and help govern the digital currency. And in February, Facebook hired a team from Chainspace, a blockchain startup — though the CEO of Chainspace, Dave Hrycyszyn, departed after about a month.
The project has already attracted the scrutiny of U.S. lawmakers. In May, members of the Senate Banking Committee sent a letter to Mr. Zuckerberg seeking more information about Facebook’s cryptocurrency and what data it might seek to collect about its users’ spending habits.
Facebook understand the fact that it is hard to build people’s and the government’s trust in their cryptocurrency. That’s they are seeking other companies and financial bodies to help to monitor the currency. It will also help to decentralize to the governance of the project, so they can avoid many regulations.
Via- The Information