The impact of Facebook (NASDAQ:FB) on the world might become greater still with the launch of Libra, Facebook’s own cryptocurrency. For now, the announcement states that it will get here in 2020 and Facebook released a white paper that explains the upcoming digital currency in detail.
However, while Libra hasn’t even launched yet, it has already generated a torrent of controversy. Not everyone is happy with the prospect of it appearing and considering the political power of some parties that want it put on hold, there’s little doubt that the 2020 release might be postponed.
One thing is for sure, the impact of this cryptocurrency will be tremendous. In fact, it’s making an impact already as many regulatory and government bodies are now studying cryptocurrencies in-depth. This might be a major step that will push crypto to replace fiat money.
What Is Libra and Why It Matters
Libra is a cryptocurrency that Facebook will launch come 2020 and it has the potential to be a huge positive force for millions of people out there. That’s because it will make international money transfers quick and easy. This is a tremendous help for millions of migrant workers and students who all need to send money home or receive payments from abroad.
There are various methods for international money transfers today, but none of them are as affordable as Libra is going to be. And with this affordability also comes the fact that the amount of such transfers can increase. This, in turn, will affect the world economy as a whole.
You should be aware that there are entire countries where remittances are a major contributor to GDP, like India and a variety of African countries. All these states will immediately get a boost if the amount of remittances increases, which will happen because less money will be lost during transfer.
When people have more money, they spend more money and are more active in starting businesses, which means they contribute to the development of their country’s economy more. And this contributes to the world economy. So, in the end, everyone wins.
Libra has the potential to be the driving force that will power up this positive loop. Considering that it’s backed by Facebook, there’s little chance of it failing. It’s also guaranteed that about a quarter of the population will learn all about it through their Facebook accounts. This immediately solves the issue of awareness, which is one of the things hindering the popularization of cryptocurrency.
Using Libra is going to be extremely simple as Facebook develops a dedicated e-wallet for quick and efficient management of all crypto transactions with this new digital currency. It’s called Calibra and from what little is known, it should become an alternative to PayPal. Only, it won’t have huge fees, which are currently prompting thousands of PayPal users to seek other money transfer methods.
It’s important to note that while Libra is Facebook’s brainchild, it won’t be managed by the company in its entirety. It will be governed by a committee made out of founding members’ representatives, so Facebook will only have a single vote. However, it’s sure to have more of an actual influence that such a limited position seems to grant.
One of the most important benefits of Libra is the hype gene...