The announcement of the new venture by Facebook- Calibra has been making headlines since last month. The new Facebook’s subsidiary focuses on financial services with a goal of utilizing the digital currency. Calibra will be powered by a blockchain called Libra and is expected to first introduce a digital wallet, then launch in 2020. The announcement has received heavy criticism both from the media and the crypto community.
But despite the split opinions there seems to be a consensus that Facebook can indeed pave way for the global adoption of blockchain. The fact that Facebook has about a third of the world’s population as its users is a great starting point in respect to global adoption. For the rest of the population who don’t own a Facebook account, it’s down to two key things; the freedom of choice and a lack of internet access.
What Is Libra
First and foremost, Libra is a cryptocurrency created for people to participate and access the Libra network. Users are able to exchange fiat with digital currencies and use them for online transactions.
Libra is essentially a stable coin but which is pegged on a government issued currency like EUR, USD etc. decentralized cryptocurrencies like Ethereum or Bitcoin are volatile in their valuation. The Libra coin is a more stable crypto and is a better choice as an ordinary consumer transaction means.
Traditionally, making financial transactions would require you to go through a bank or PayPal – a modern online transfer facilitator. Now, although the modern financial systems use their own financial technology, Libra is special. It is powered by blockchain.
Facebook is not alone at this. The Libra association is a consortium of partner companies like visa, MasterCard, Uber, PayPal among others. The companies shall work to ensure faster payment processes and which are more accurate and safer than the existing technologies.
Facebook Mass Adoption Plans
You can’t escape being exposed by Facebook. According to WIRED, The giant social media company is so dominant, it affects even those who don’t have an account. The flagship social media company has become so integral in every day’s family life and has become an entity to the daily lives of the ordinary person.
With about 91% of people not yet invested and 57% of them interested in cryptocurrencies, Facebook bridges this gap by making investment a reality.
Libra As A Payment And Fiat To Crypto Exchanger
Libra will be available in the Facebook messenger app and WhatsApp. The partners in the consortium are also expected to integrate payments in their platforms.
Facebook also plans to install ATM-like terminals for Libra coin. This is according to the Verge. The goal is to have as many shopping outlets accepting Libra as a payment means as possible.
Current Challenges
One of the biggest challenges the Libra coin is facing at the moment is regulatory pressure. Anthony Pompliano, a credible voice in crypto says that a letter has already been sent to Facebook, wanting them to stop further development of Libra. There are also reports of groups seeking the same.