Libra will be controlled by the Libra Association, which is a non-profit based in Geneva, Switzerland. But Facebook will have a leadership role for all of , though later on it will be just one of the many members part of the association. Facebook also announced a dedicated wallet app called Calibra, which will be built into WhatsApp and Messenger as well, to let users store and use these Libra coins. Calibra is a separate subsidiary company and the data will not be shared with Facebook.
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- Governments race to beat Facebook's cryptocurrency, libra, at its own game: Don Pittis
- Libra Coin - Сток картинки
- Facebook's Libracoin – impact on payments and regulations
- Facebook's Libra cryptocurrency to launch in January 2021
- Facebook’s Libra Coin: Everything You Need to Know
- Libra coin vector image
- Facebook-Backed Libra Cryptocurrency Project Is Scaled Back
Governments race to beat Facebook's cryptocurrency, libra, at its own game: Don Pittis
Facebook, the largest social network in the world, stunned the world earlier this year with the announcement of its own cryptocurrency, Libra. The launch has raised questions about the difference between Libra and existing cryptocurrencies, as well as the implications of private companies competing with sovereign countries in issuing currencies. Unlike Bitcoin , which has neither an owner nor a controlling body, Libra will be governed by a Swiss foundation comprised of several members that are well-established brands, including Uber, Visa and PayPal.
Libra operates within a much more controlled environment relative to many other cryptos like Bitcoin and Ether. Instead, the book-keeping of Libra transactions is bestowed upon a set of trusted computing nodes controlled by the members of the Libra foundation. In contrast, Bitcoin is a free-for-all where anybody can join the group of computers that verify transactions. This difference in governance structure has wide-ranging implications for the economic gains and possible risks society faces from a possible widespread adoption of new currencies like Libra.
A fundamental issue most fintech companies face today is scaleability. The Visa network can authorize up to 65, transactions per second , while Bitcoin typically processes a few hundred thousand a day. Libra overcomes these struggles by a well-defined governance structure where necessary technical adaptations can be efficiently decided upon in an organized manner.
It will be up to the consortium members to credibly convince the public that they will refrain from monetizing this huge wealth of data that they sit upon. In our traditional financial system, laws and regulators watch over privacy as well as access to the financial system. Laws not only provide privacy protections, they also guard against fraud and ensure that citizens can participate on a level playing field.
Rules are created in a democratic process. Banks in western countries cannot easily ban citizens from basic financial services, which are important to join the workforce and get established in society.
But currencies issued by private companies do not face the same scrutiny. What if Facebook decides you cannot have Libra because you posted a critical article on the internet? Your legal options would be limited. Without a governing body, there is nobody who can lock anybody else out of the system. While this approach ensures equal access, however, it also invites criminals to use Bitcoin for illicit purposes.
Banks offered safekeeping for money, allowing the merchant to store the funds and withdraw them whenever and wherever needed.
Many credit-card companies provide protection against fraudulent transactions. No such protections exist for cryptocurrencies. No recourse is possible should a hacker gain access to your wallet or if your crypto becomes worthless.
With cryptocurrencies, users must once again worry about safekeeping. Often under-appreciated, but of great importance, is government-provided deposit insurance that provides a second layer of security, protecting depositors against the default of the bank. As users buy Libra with fiat currency, including Canadian dollars, the Libra foundation will take these dollars and invest them in safe securities.
Because Libra is backed with real and stable financial assets, the value of Libra will then also be stable. While this approach sounds great at a first glance, several problems exist that have plagued banking for centuries. Temptations will arise to invest some of the money in riskier securities for a higher return. What if people, for some reason or another, doubt that the assets are there or think that the assets lost value?
Long lines of depositors wanting to withdraw their funds from a bank that they rightfully or wrongfully believe to be troubled have been observed ever since the inception of banks. Such bank runs are often self-fulfilling, and Libra is not immune to this problem. When users want to cash out, Libra would have to sell their assets at a large scale, causing the price of these very assets to fall and hence end up with insufficient funds to pay all investors. Some U. All the money that users will put into Libra will be missed in the traditional banking system, where banks can put deposits to good use by providing loans to productive companies that generate value and employment.
The economic consequences therefore could be far-reaching. While Libra might not offer many advantages to users in Western countries, it will open access to financial services for millions of people around the world without bank accounts. Cross-border payments are in the current system ridiculously expensive and slow.
Traditional banking often seems bureaucratic and technologically outdated. All these issues could be fixed by banks, but it will take outside pressure of new fintech startups to get it done. Edition: Available editions Global. Become an author Sign up as a reader Sign in. Alfred Lehar , University of Calgary. Events More events. Jobs More jobs.
Libra Coin - Сток картинки
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Facebook's Libracoin – impact on payments and regulations
Libra coin is a cryptocurrency that will allow its users to send money to their friends and buy things with almost no fees. Users will be able to top up their accounts at exchange points such as grocery stores much like the Apple and Amazon cards you can buy now and through their standalone app. Each founding member is given a single vote to control the governance of the coin, with Facebook saying it hopes to have over founding members for its launch in One of the biggest takeaways from this story is that Facebook stated that over 1. As well as empowering people around the world, there could be an extra 1. This will encourage more businesses to advertise on Facebook and increase their bottom line. There is no interest earned for users who use hold Libra coin — that goes to the Libra association members who will receive tokens that pay interest. Facebook is much more than just a social platform; it is a technology influencer.
Facebook's Libra cryptocurrency to launch in January 2021
The Libra Association put together by Facebook last year is rebranding in further efforts to distance itself from the original Facebook-led vision rolled out last year. The organization has also finalized its leadership team, which includes Dahlia Malkhi as chief technology officer, Christy Clark as chief of staff, Steve Bunnell as chief legal officer and Kiran Raj as executive vice president for growth and innovation and deputy general counsel. Social media giant Facebook unveiled Libra in June after over a year of secretive development and research work. At the time, the project envisioned a stablecoin backed by a basket of fiat currencies, one that could be used worldwide as a means of exchange.
Facebook’s Libra Coin: Everything You Need to Know
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Libra coin vector image
Facebook unveiled plans Tuesday for a new global cryptocurrency called Libra, pledging to deliver a stable virtual money that lives on smartphones and could bring over a billion "unbanked" people into the financial system. The Libra coin plan, backed by financial and nonprofit partners, represents an ambitious new initiative for the world's biggest social network with the potential to bring crypto-money out of the shadows and into the mainstream. Facebook and some two dozen partners released a prototype of Libra as an open source code for developers interested in weaving it into apps, services or businesses ahead of a rollout as global digital money next year. The nonprofit Libra Association based in Geneva will oversee the blockchain-based coin, maintaining a real-world asset reserve to keep its value stable. The association's Dante Disparte said it could offer online commerce and financial services at minimal cost to more than a billion "unbanked" people—adults without bank accounts or those who use services outside the banking system such as payday loans to make ends meet. Facebook will be just one voice among many in the association, but is separately building a digital wallet called Calibra. But the move raised questions about how such a new money would be regulated, with one lawmaker calling for a pause on Libra.
Facebook-Backed Libra Cryptocurrency Project Is Scaled Back
This future is a lot closer than you think — just a few months away. Then, a new player will emerge and try to change the game. Considering there are more than 2. Facebook joined forces with 27 organizations to introduce the new cryptocurrency to the world in
Facebook's Libra cryptocurrency is readying to launch as early as January, the Financial Times reported on Friday, citing three unidentified people involved in the project. The Geneva-based Libra Association that will issue and govern Libra plans to launch a single digital coin backed by the dollar, the FT said, citing one of the people. The move would represent an even bigger scaling-back of the project's ambitions than that proposed in April in response to a regulatory and political backlash against the project. Libra, unveiled by Facebook Inc last year, was relaunched in slimmed-down form after regulators and central banks across the world raised concerns it could upset financial stability and erode mainstream power over money. The Libra Association, of which Facebook is one of 27 members, is seeking the go-ahead from Switzerland's markets watchdog to issue a series of stablecoins backed by individual traditional currencies, as well as a token based on the currency-pegged stablecoins.
The announcement on Monday came as the planned Libra global currency faces swelling criticism from regulators, and reported warnings from the Group of Seven that it poses a threat to the global financial system. The group kicked off its first council meeting in Geneva and founding members including Uber, Spotify and Vodafone formally signed onto the Libra Charter, director general Bertrand Perez said. Credit card giants Visa and Mastercard, online marketplace eBay and digital payments firm Stripe each announced Friday they had changed their minds about being founding members of the association, following a similar recent announcement by digital payments firm PayPal. The Libra Association confirmed Friday that the companies would no longer be founding members, but said it would continue building an alliance of businesses, social-good organizations, and others to implement the cryptocurrency. Its launch was originally planned for mid, but Perez said he had not ruled out a later start date. Facebook executives have, however, claimed the new digital coin could help lower costs for global money transfers and help those without access to the banking system.
Representations of virtual currency are displayed in front of the Libra logo in this illustration picture, June 21, O 's Libra project, plans to launch a U. The association, which comprises 26 financial firms and non-profits, said it was relocating its main operations from Switzerland to the United States and withdrawing its payment system license application with the Swiss financial regulator.