What is Libra Coin?
Libra will be created only when users buy coins with real money. Libra is first and foremost, a cryptocurrency created to let people access and participate in the Libra Network. Users shall be able to exchange fiat currency into these digital currencies and use them in online transactions.
Libra is built on an open-source blockchain called the Libra Blockchain featuring its own proof-of-stake protocol. The Libra mission is to reinvent money and transform the global economy so people everywhere can live better lives.
Things you Need to know about Libra
The Libra Association is made up of reputable partner companies such as MasterCard, Visa, PayPal, Uber, and many others. These companies shall work together to ensure payment processes are faster, more accurate, and safer than existing financial technology by using Blockchain Technology.
Libra is fully backed by a reserve of real assets. A basket of bank deposits and short-term government securities will be held in the Libra Reserve for every Libra that is created, building trust in its intrinsic value. The Libra Reserve will be administered with the objective of preserving the value of Libra over time.
Facebook announces Libra Cryptocurrency
Facebook expects that consumers will be able to begin making actual purchases with Libra, although the number of purchases will be limited at first. The announcement is seen as a boon for other cryptocurrencies.
Libra shall be instantly exposed to 30% of the world’s population, if successful. That alone is a massive plus point for the mass adoption for the digital asset.
Facebook has reportedly been developing Libra for more than a year, and few details about the project have been available to the public. One thing that is known is that Libra will be pegged to a basket of government-issued currencies in an effort to preemptively counter the extreme volatility which has plagued other digital coins.
Facebook teams played a key role in the creation of the Libra Association and the Libra Blockchain, working with the other Founding Members. While final decision-making authority rests with the association, Facebook is expected to maintain a leadership role through 2019.