What is Facebook’s Cryptocurrency ‘Libra’? Can it work as a medium of exchange?

With the launch of “Libra” token in June 2019, Facebook took an initiative to revolutionize the global digital finance sector. With Cryptocurrency investment gaining traction across the globe, and the token Libra was intended to be a universal currency same as the US dollar and the Euro. In today’s price, Libra stands at $0.116453 with a 24 hours trade volume. The Libra domain is a blockchain-based project that is only developed to enhance transaction in the eCommerce sector.

Can one be benefitted from investing in Libra?

Libra is a new cryptocurrency created by Facebook and is intended to be used as a low-fee and simple to use global currency. As depicted by a Crypto token development company, the token is owned by the Libra Association, which is an entirely new and separate organization based in Switzerland. The organization includes 27 members in total. This new form of currency can be used to pay for any purchase of products or services. But the Libra cryptocurrency was later rebranded as Diem and Libra Association was also rebranded as Diem Association as well.

Key takeaways of the cryptocurrency –

•    Low-fee medium of exchange to be used across the globe.

•    Backed by major currencies and government debt securities, which gives the cryptocurrency needed stability.

•    The cryptocurrency is handled by the Diem Association, a non-profit and independent made of the coin’s founding partners.

The Libra token works on blockchain technology and one can obviously be benefitted from investing in Libra as the token can be purchased, held, and used by cryptocurrency wallets. You can easily receive Libra tokens by cashing in dollars, and the asset is usable by businesses that supports its usage. The most interesting thing is that a digital wallet service is also developed by Facebook for holding and spending the token.

What was the purpose of launching Libra?

According to a Digital currency exchange development service provider, the Libra cryptocurrency was only intended to serve the purpose of being used as a simple medium of exchange from any part of the world on a daily basis. However, the main purpose of the cryptocurrency is to become a mainstream digital asset that can be used by anyone. Facebook’s Libra initiative was only taken to provide a stable cryptocurrency with cheaper fees compared to other money sending services.

Is Libra different from other cryptocurrencies?

It is a common fact that all the cryptocurrencies differ from one another, and Libra’s differentiating factor by real assets only. This is not maintained by other cryptocurrencies, which is the reason why those currencies lack the stability and guaranteed intrinsic value offered Libra offers.

Libra is backed by the renowned businesses that make up the Libra Association and includes Visa, Mastercard, PayPal, and eBay. These Associations manage the Libra reserve, which holds the authority to create and destroy the tokens. Libra is low in volatility and comes with low fees, which makes it a more realistic medium of exchange when compared to other digital assets.

However, even facing strong oppositions from currency regulators across the globe, the Facebook-backed digital currency or token might deliver what it had promised, but still, there is long way ahead when it comes to reshaping the global economy. Facebook has always been the best at providing the best Social media services, and with the launch of “Libra” the decentralized finance ecosystem is all set to roll.