It has been the news of these days: from 2020 you can make purchases with the Facebook Crypto Currency. However, Facebook has announced a few hours ago that it will not offer this digital currency until completely resolving regulatory doubts and obtaining all necessary approvals.
What is Libra?
It is a new currency that you can convert into real money to make different transactions such as transfers, income and purchases in some establishments.
It is a digital currency that is based on blockchain technology, as reported by Facebook, whose main advantage is the elimination of intermediaries, which minimizes the costs of sending money. Let's say it's a bitcoin brought to daily consumption. Its launch date is scheduled for 2020, if the project continues smoothly.
How does Libra work?
With the launch of Libra, the companies that make up this Association will provide an initial value that will be guaranteed in a deposit, so it will not be affected by the devaluation of other currencies.
Libra will be a currency integrated into Facebook Messenger and WhatsApp, which can be used to perform different transactions. Users will deposit in their wallet the equivalent value in their national currency, similar to any currency exchange. At first, the value of a Facebook Pound will be that of an American dollar.
Those interested should go to the available exchange houses to create their own wallet, with which all kinds of economic transactions can be carried out. Digital currency to send money, receive payments as remuneration for services or make purchases of products in those establishments that accept this currency.
The more than 2.3 billion users that Facebook currently has, gives a quick overview of what the impact and global expansion of this cryptocurrency can be.
It is a quick and direct way to access the global market, for all types of consumers, since Libra becomes one more currency that you don't have to carry in the physical wallet, but in a virtual one.
Who is behind Libra?
Currently, there are 29 companies that have joined the consortium of the creation of this new cryptocurrency. Although Facebook is the company that will lead the project and therefore will take the reins of its management, Zuckerberg himself points out that all affiliated companies "will have the same financial commitments, privileges and obligations."
The companies mentioned above are those that currently form the consortium, although they expect to achieve a totally global project and exceed 100 active members, on the date set for its launch. It is a means of payment that, at the moment, is deregulated, whose management is totally private.
What impact will it have on SMEs?
The first benefit that is seen with Libra is the accessibility of economic transactions for everyone, it is enough to have a personal page on Facebook, it does not even have a bank account.
Everything indicates that Libra can become the most used payment method in the world to acquire all kinds of products and hire different services.
International transactions acquire a value of immediacy and low cost, by avoiding or minimizing commissions, something that for companies that adapt to these transactions will allow them easy access to the global market.
What is the value of Libra? A series of international currency funds such as the dollar and the euro is expected to be based, so it will not be subject to speculative fluctuations such as Bitcoin.
Who controls Libra?
A Swiss-based association, the Libra Association , of which 28 large companies such as Visa, MasterCard, Vodafone, Spotify, PayPal or Uber are part, as well as some important venture capital funds.
How will Libras be acquired?
In the same way that one currency is exchanged for another. Every euro or dollar of the Facebok cryptocurrency will have the backing of these real currencies deposited in the banks.
Who can use Libra? The purpose of Facebook is to offer it to all its registered users. Your authorization will depend on the regulatory authorities of each country, so it is possible that there are countries where it is not allowed, or has restrictions.
Where are Facebook Pounds stored?
In a virtual portfolio, a platform where each user can access their account from an app or through an internet browser. Facebook has created a subsidiary, Calibra , to manage user transactions that will also offer services. Other companies may create similar portfolios.
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