Facebook presented Libra as a means of facilitating the exchange of money especially for those who do not have a bank account. However, the truth is that both financial analysts and national and international organizations are waiting for the launch of this new cryptomeda.
What is Libra, from Facebook
Libra is a cryptomoeda, but compared to other cryptomoedas that were born with the vocation of value, Libra is born with a different spirit: that of being a practical means of economic exchange that facilitates, expedites and reduces the digital purchase and sale between individuals.
Following this statement of objectives of its promoters, among which more than 28 multinationals such as eBay, Mastercard, Visa or PayPal, the attitudes of prevention and fear do not seem very well founded.
Main resources, such as cryptomoeda
The characteristics of Libra as a cryptomeda seem to support this vision of Albella. The truth is, unlike other cryptomoks, Libra would function more like a coin to use. It would be backed by a fund of international monetary assets in currencies such as the dollar or the euro, which would be settled according to their currency issues. On the other hand, the servers or nodes that make up the blockchain of the Libra Network are created with authorized access and not by free allocation, as is the case with other cryptomoins.
All this will be governed and managed by a non-profit association based in Switzerland, which will be responsible for managing the network, Libra Association. It will also manage the monetary guarantee funds. Although the association currently consists of the 28 promoting members we mentioned earlier, Facebook expects to have 100 for the final launch, which it plans for 2020.
How Facebook Profits from Libra’s Launch
Facebook needs to diversify and, at the same time, feed your business model. With the launch of Libra and its corresponding payment platform, Calibra, the social network aims to optimize and facilitate transactions between individuals and B2C businesses. In this way, it can consolidate itself as a sales platform and at the same time increase your advertising revenue.
To achieve this, at least in the euro zone, the requirements of the European Central Bank, which, in the words of its vice president, Luis de Guindos, in the seminar at the Universidad Menéndez Pelayo, “must comply with the regulations concerning confidentiality, security and money laundering”.
Compliance with such requirements is an issue that is delaying the launch of the Libra. David Marcus, head of Calibra, said last July that the new cryptomoeda will not see the light until “all regulatory doubts are clarified.
Libra, for some, may pose a threat to the financial system itself, as we know it so far. However, it could also be an exponent of the necessary adaptation of the financial world to the digital age.