On June 18^th, 2019, Facebook announced to the world that they will be releasing their very own Cryptocurrency.

Why is this worth writing about? It could really change how we pay & live. It sounds like a big statement but because Facebook is the same company as Instagram and Whatsapp, it could really change a lot of things. Here is the low down on Facebook’s cryptocurrency: Libra.

What is Libra?

Firstly, here is how Facebook defines Libra’s mission: “enable a simple global currency and financial infrastructure that empowers billions of people.” As you can see it is a very ambitious plan…

The idea was born from the observation that the fewer money people have the more they pay for financial services, and even more so for international services.

Think about ATM charges, loan interest rates, bank transfer fees, sending cash via western union and so forth.

How does it work?

In short, the idea is for people to be able to send money to anybody else across the planet, with the click of a button, without having to pay fees on the transaction or “close to zero fees”.

For this to work, Facebook is putting security at the heart of its strategy. It will be built on its own blockchain technology, “the Libra Blockchain”, which will be an open-source platform so that anybody can access it. Making Libra Blockchain open source will support the creation and expansion of a community of developers around the world familiar with the platform so that it can reach the mass and make Libra an everyday payment method.

Libra wants to be a stable cryptocurrency, away from the Bitcoin crazy fluctuation we have witnessed over the past few years. In order to ensure that, Facebook has designed what they call the “Libra Reserve” which is linked to real assets. This is super important, so people can trust that this digital currency can indeed convert to their local currency based on an exchange rate. This backup is what makes Libra so trustworthy and makes this cryptocurrency different from its predecessors.

Is it safe?

The final thing to know about Libra is that it will be governed by an independent and non-profit association based in Geneva, Switzerland. The Association will serve as a neutral association who will facilitate the use of Libra as well as ensuring a smooth and durable rollout while managing the reserve of assets which is key for Libra to succeed.

We cannot predict how long it will take for your local grocery store to accept Libra as a payment method but the release by Facebook is planned for the first half of 2020 so just around the corner really…