With the growing craze of cryptocurrency and Blockchain among businesses, Facebook has also jumped into this emerging world with its new digital currency. The tech giant had a plan to introduce Libra, its first crypto-based project, early this year. However, there are no updates on the exact launching dates. Libra will allow Facebook users to do online transactions with almost zero fees.
How can this digital currency help us? How soon can you use Facebook’s cryptocurrency to buy things? If such questions have crossed your mind, we are here to help. Below, we will explain everything you need to know about Facebook’s Libra and its wallet Novi. After reading this post, you will get a clear idea of whether your business needs to hire a DApp development company or not.
- What is Libra?
According to Facebook, Libra is a digital currency that allows people to buy things or send money online without transaction fees. Built by Facebook, this cryptocurrency gets support from Facebook-created Blockchain.
You can use Libra pseudonymously to buy things or send money online using Facebook’s wallet Novi. Initially known as Calibra wallet, you can build Novi into messenger, WhatsApp, and its app.
- The purpose of launching this digital currency
The primary reason for launching Libra is that Facebook wants to reach out to 1.7 billion people across the globe who do not have banking facilities. It will help them to carry out tractions with ease and with no charges. Of course, this is unlikely to banks and other financial institutions. In addition to this, Facebook faces regulation and antitrust measures, as many regulators want to separate from this company.
- Will Facebook control Libra?
Well, Facebook will not have a charge of Libra fully. Instead, it will be controlled by founding members of Libra, such as Uber, Visa, and Horowitz. Each member has invested at least $10 million into the operations of the project. It serves as a stablecoin with a price almost equal to the dollar or Euro. The reason for doing this is to make this digital currency less volatile like many cryptocurrencies.
Apart from Libra, Facebook will launch a secondary company called Calibra wallet, renamed Novi wallet. It will allow users to access Libra while protecting their privacy by separating Facebook data from Libra transactions. In this way, Libra payments will remain protected from being used in ad targeting.
- How to get access to Libra?
Facebook may not give many details about how to access Libra, but the signs direct to a hybrid approach. The presence of Visa and MasterCard in the Libra association says that the company will be readily offering users to buy this cryptocurrency. Also, the company may distribute some amount of cryptocurrency free of cost as fuel to kickstart its adoption. It will be an excellent step towards the goal of reaching out to people with no banking and financial services.
- How to use Libra?
When it comes to using Facebook’s cryptocurrency, the process is easy. So, once launched, the first thing you need to do is download Novi or Calibra – a digital wallet for Libra. By using the Novi wallet, you can send money to anyone via smartphones. You can access this wallet on WhatsApp, Messenger, and a standalone app.
- What are the uses of this digital currency?
Novi wallet, the Libra digital wallet, helps users to carry out transactions anywhere in the world with any fees. In addition to app transactions, Facebook wants users to use Libra for buying things at a grocery shop or other day-to-day transactions. Other investors in the project suggest that users may also use Libra to pay for riding services.
- Is this digital currency safe for use?
Though the financial app by Facebook comes with numerous privacy concerns, the company promises to integrate technologies that protect users from fraud and money laundering. As per the statement given by Facebook, we will use anti-fraud processes and verification similar to banks and credit cards. Plus, we will install automated systems to keep track of activity to prevent any fraudulent behavior.
If any user loses access to their accounts or loses money, we have live support as a solution. Besides this, Facebook claims to offer the highest level of privacy to users by not mingling Libra payments with ad profiles. Like other cryptocurrencies, Libra Blockchain is pseudonymous. It means users do not have to reveal their real-life identities.
- How will Facebook make money with Libra?
Facebook, along with other members of the Libra association, can make money in the form of interest, which is gained on the cash held in reserve to maintain Libra’s value stable.
Libra, Facebook’s audacious aid, has the potential to offer financial services to unbanked individuals. It also offers more privacy and decentralized solutions to users. It will be a great advantage for businesses of all sizes, especially small-scale companies. Hopefully, after reading this post, you will be able to decide whether you should hire a cryptocurrency development company for your business or not.
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