Facebook’s next big weapon: Libra Currency
Imagine one day you suddenly discover that to make an online payment you need a specific currency called libra. What will you do?
On June 18th, 2019 when Facebook launched libra currency the world woke up with a shock that all major financial service companies like Paypal, Visa, Mastercard, Stripe, Marcado Pago, eBay & PayU have joined in as a part of a new currency formation under the umbrella Libra Association. The official Facebook page of the same is made under a non-profit organisation and it says ‘The Libra Association is working to empower people around the world through the creation of a simple global currency.’ Which means one globe, one currency. Under the same about section on the official page, the mission of this organisation is described as ‘our mission is to enable a simple global currency and financial infrastructure that can empower billions of people. Libra will be built on a secure, scalable, and reliable blockchain; it will be backed by a reserve of assets designed to give it intrinsic value; and it will be governed by the independent Libra Association, which was formed to manage and evolve this new ecosystem.’ Imagine a clandestinely handled non-profit organisation which will directly control the economy of the world. Sounds catastrophic.
Things started changing after a while when PayPal, followed by Visa, MasterCard, Stripe & Mercado Pago moved out of the association on October 4th, 2019. But eBay & PayU stayed back with the association. We must wait till October 14th, when all the founding members meet again at Geneva for their first-ever Libra Council meeting because post this Geneva meet everything will be official. Terms will be set, conditions will be applied and things will start rolling in real.
In between regulators & politicians from the US have shown deepest concern about the idea of libra association, hence Mark Zuckerberg will appear before the House Committee on Financial Services on October 23, 2019, to discuss libra and its step ahead plan. Economists are concerned about the fact that one globe one currency may have multiple disadvantages. Money laundering & increase in terrorist activities are few prime concerns.
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Information Source: The Verge, BBC, Libra Official Facebook Page
