Facebook announces “Libra” the unit of currency which is a global currency in the digital form, in simple it’s a cryptocurrency and financial infrastructure. Libra will come into existence in 2020 through which billions of users across the globe may make financial transactions online.
Libra, the cryptocurrency is developed on the basis of blockchain technology through which it’s users will be able to either send or receive their money through secured transactions which can be used in the way that we are using other platforms like google pay, Phone Pe, etc…
Is Libra going to have a wallet?
Yes, Facebook announces Calibra, a digital wallet for Libra. This wallet will be implemented in all the facebook platforms like Messenger, WhatsApp and also as a standalone app. If you have a smartphone with an internet connection you can easily access and use this wallet everywhere to spend or to receive money.
How does Libra work?
You need to get Libra like the way other cryptocurrencies like Bitcoin Ethereum, Litecoin, etc… in the form of local currency and spend them without big transaction fees. The aim is to make Libra accepted by the people and make a currency that people use it in the way they use their currency depends upon their regions
in their daily lives. And how can we trust libra as the market value changes dynamically so to overcome this libra is backed by a reserve to make its value stable.
What are the sources that provide money for the reserve to maintain?
The money will come from both the end of Libra i.e from investors and the users.
through which the association pays incentives to the founding members in the form of Libra coins to encourage the adoption by users. In short, the only way to create more Libra is by purchasing more Libra and grow the reserve.