Yesterday, Facebook finally announced its cryptocurrency, which came with the name Libra, which may be derived from the French / Spanish word Libre, which means "free", as well as the English description Libral, which means "liberated." The main goal of the new Facebook currency, Libra, is to buy products and send money directly over the Internet easily and without deducting your expenses.
What is distinctive about the new Facebook currency also is that it will allow you to buy products from regular shops through the use of a wallet application dedicated to this currency, and Facebook itself will launch an application in this regard, which is the “Calibra Wallet” and this wallet will also be integrated into Messenger, WhatsApp, as well as the separate application. And all this has been clarified by Facebook at Her white page Made available yesterday, which also covered Blockchain and other technical details.
So, we are in front of a cryptocurrency, which is theoretically owned by Facebook and will be integrated into the most used Messenger and WhatsApp messaging applications, and the user will also be able to use it in the usual stores ... Do you think that it's over? Follow us now iPhone Islam's detailed report on the new currency in all respects.
What is Facebook's new Libra coin?
As mentioned in the introduction, the currency will allow you to buy products as well as send and receive money through the Calibra App, which is considered the Libra currency wallet, as well as the applications built into both WhatsApp and Messenger, and since the currency is coming from Facebook and integrated into the Facebook app, you may think that Facebook has full control. However, this is - fortunately - not true, as Facebook is just a member of the Libra Association launched to manage currency, and this organization includes veteran members such as Visa, Uber as well as the capital company Andreessen Horowitz, and each of the members has invested 10 million A dollar or more in operations of this currency.
The Libra Association will manage the blockchain for the Libra project, and it will definitely be open source. It will also develop a currency operating platform that will work with a programming language called Move, a programming language of their own, and from the commercial point of view this organization will work on the Libra currency drawers. As a payment method in as many places and platforms as possible.
So, will your bank information be with Facebook?
Facebook as a company you know is not liked in terms of privacy matters, so Facebook has created a subsidiary company named Calibra, this company will manage encryption matters and protect users' privacy by not merging your Libra information with the information Facebook already owns about you, and therefore you will not be targeted from Through Facebook ads based on your purchases and your money, you will also not show your financial information and operations to anyone. Economically speaking, both Facebook and Calibra, as well as members of the Libra Association, will earn some benefits with your money, and - as they state - to preserve the value of the Libra coin no more.
The Calibra app that will prepare your Libra coin wallet.
Why did Libra appear in the first place?
Facebook found in the world of cryptocurrencies both profit and loss, but this did not prevent it from entering this world from its widest gates, but the matter certainly has its reasons, and one of the main reasons for the emergence of the Libra currency is the costs of service Fees cut by credit cards upon payment and this The factor in itself has posed a threat to Facebook ads, as well. Facebook's thought has gone a little further, which is what if a competitor like Google built a digital currency similar to the Libra currency? In this case, there will be a noticeable advantage for this competitor on Facebook as well, he will be able to take a more conservative look at what is spent on Facebook ads, also, a currency like Libra will help more than 1.7 billion people who do not have a bank account in the first place and this huge number of people for sure He has interests related to Facebook ads ... right?
Facebook - or the Libra Organization - says through this picture: For those who can fundamentally, it is expensive to send money globally, on average, the user spends 7% of the amount on that transfer.
The current cryptocurrencies such as Bitcoin and Etherium are strong and widespread as we know, but they are not widely used as the new Libra currency will be, as well. These cryptocurrencies are very much affected by the price of supply and demand, etc., so you may remember the huge jump that bitcoin and from Then it happened again, as well. Those cryptocurrencies lost a large part of their value - and perhaps the reason for their existence in the first place - due to speculation because very few places used to accept them instead of the US dollar, these factors are the same problems that face any cryptocurrency, but With Facebook and its currency, Libra will not be the case, as Facebook has relationships with more than 7 million advertisers on its network of huge companies, as well as 90 million advertisers from smaller companies, and this number of dealers in this currency alone is enough and hard to support it.
What's the difference, then, between Libra and PayPal?
If you asked this question in your head, you are thinking like Facebook itself thought, as Facebook wants to make Libra as a currency and as a payment method a revolutionary alternative to PayPal - even though Paypal and eBay themselves are participants in the Libra organization - Facebook wants to make Libra easier in terms of getting started. And creating a new account and making it an easier and more effective payment currency, this is definitely in addition to the fact that Libra deducts less service costs and may not be deducted from the base in some circumstances.
"Libra's mission is to create a simple-to-use global currency as well as create a financial infrastructure capable of serving billions of users."
Facebook added: “Success is that a person who works in a country other than his home is able to send money to his family without any exploitation or difficulty, and it is also that a university student can pay the rent for his room as easily as paying for a cup of coffee he buys. (Adapted), also, Facebook seeks to meet the large service expenses of money-sending services, which reach 7% at times, and seeks to support small financial transactions microtransactions by deducting only a few cents from the original amount during the transfer.
How does Libra work, then?
So far, and from the previous lines, you know the basics of working the Libra currency for us as regular users, all there is to it is that you will get your Libra account and then spend from your account as you spend from your regular bank account, but without incurring large payment expenses, as well as you will be able to practice these things without If your name appears or anyone knows who you are - if this is a positive thing - except that whether it is through Calibra or through Facebook as mentioned above, Facebook will know a lot about you and this is something that you must agree to in spite of you once you use Facebook .
Facebook will work depending on blockchain technologies, and this is a complex technical aspect that may not interest you, but from an economic point of view the currency will work through the Libra Association that we mentioned above, this organization will include 28 members - who have not yet completed - and each member will pay at least 10 million USD To join the family, and this paid amount will contribute to the operating expenses of the currency in general as well as contribute to making the Blockchain in particular and the currency in general have real physical assets that guarantee the financial value, and the members of Libra are as follows classified according to their field of work:
1- The banking sector and the field of payments will include: MasterCard, Paypal, Visa, Stripe and also PayU.
2- The technical and sales field will include: Booking.com, eBay, Facebook, Calibra, Lyft, Spotify, Uber, Farfetch and Mercado Pago.
3- The field of communications will include: Vodafone and lliad.
4- The blockchain domain will include: Anchorage, Bison Trails, Coinbase, and Xapo Holdings.
5- The Capital Area will include: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital and Union Square Ventrues.
6- Non-profit and educational organizations will include: Creative Destruction Lab, Kiva, Mercy Corps, Women's World Banking.
In general, Facebook in particular and the Libra Association aims to reach 2020 active members in conjunction with the launch date of the new currency, which will be in the year XNUMX, bearing in mind that the headquarters of the Libra Association will be located - as you can expect - in Geneva, Switzerland.
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It will be the currency of the future
Thank you for this nice topic
Nice report 👏 May Allah reward you well
I don't think it will succeed !!
I think that this type of currency has major problems and the current financial structure that we know which we know is banks and financial institutions will not fall, and the reason is simple. First of all, these currencies are difficult to understand physically, meaning that real currencies are valued based on many data and are linked to sources such as gold, money markets, supply and demand The value of each currency is based on the value of the currency source’s reserves, liquidity, inflation, the movement of reciprocal trade, and other many factors, and this is what makes real currencies fixed in prices due to their reliance on what I mentioned as well as a reliable means in the financial world. As for the electronic currency of Libra first, it is difficult to understand its basing on what to estimate its actual value and whether Strong dealings as everyone knows that countries, governments, institutions, companies, and even ordinary people will never deal with this type because it is simply considered fake in one way or another and in the financial world dealing with it is considered a risk and the evidence is a formation that has not been dealt with at the level of governmental and financial institutions and banks, but even Some of them fight it for us as people, many have questions and doubts whether this currency is being converted Here is a physical currency for liquidity and how this is done, and I mean physical, which paper currencies are widespread, such as the dollar, the euro, and others. Are they accepted in many places? The mechanism for dealing with them, such as security risks, data leakage, etc., with any party I deal in financial transactions with them. Are there transactions with them with the central banks of countries and many Many question marks To understand the matter in a deeper way, look at the history of similar Bitcoin
Your words are logical, but the trend is compulsory, and the evidence is that many countries have already begun to take serious steps to create or participate in electronic currencies.
I think this currency will threaten the banking empire
If their use and access are facilitated
I absolutely do not trust Facebook in its empire that seeks to know everything about us! (We don't like ... we don't hate ... our political and religious tendencies ... our geographical location ... who are our friends ... who are our family members) Now they want to have information about what we spend and who we send our money to!
Regardless of Facebook's attempts to reassure us, I do not trust them and their partners (which are all American companies!).
The American government would not have let this matter pass and threaten its dollar and its control over the money market if it had no control or finger in this process!
Nonsense words .. I ask everyone to stay away from this currency and the empire of Facebook and its already suspicious owner!
We do not forget how Facebook and its owner delete Arab and Islamic accounts every day for nothing other than that they support the Palestinian and Islamic cause!
A trivial Zionist, do not support him by buying and using his suspicious services!
You're right
I hate Facebook and all of its programs
How is this currency purchased and where can I get it?