What Facebook or any other IT company offers is not a cryptocurrency, as it violates the fundamental characteristics of Blockchain technology. Its concept is based on five things: openness, lack of borders, neutrality, resistance to censorship and publicity. Libra does not match any of them.
If we want to reinvent the money and create a system that works for everyone and everywhere, then let’s do it right using a decentralized currency. What Facebook or any other IT company offers is not a cryptocurrency, as it violates the fundamental characteristics of Blockchain technology. Its concept is based on five things: openness, lack of borders, neutrality, resistance to censorship and publicity. Libra does not match any of them.
On the contrary, Metahash includes all the main characteristics of Blockchain technology. It is the most secure Blockchain with the newest generation of Smart Contracts and decentralized Internet.
Libra should be launched by 2020, and the Calibra subsidiary established by Facebook will provide financial services based on it. Users will be able to pay with cryptocurrency through a special wallet, which will first be available inside the Facebook Messenger and WhatsApp messengers, and next year as a standalone application for Android and iOS.
Many people love Facebook and believe that the company attaches great importance to the privacy and privacy issues of its users.
Libra in future
Pictures of the technocratic future look bleak, Libra is one of the first steps to such a future. Libra principles are more suited to the ideas of totalitarian and technocratic societies of the future, where there is no confidentiality, and the personal data of some people are monetized for the benefit of others. The latter phenomenon has long been happening these days.
Libra is a convenient tool for international transfers, purchases, and travel, as it solves the problem of expensive conversions, long currency transfers and the underdevelopment of many banking institutions (for example, the absence of high fees for currency conversion and money transfers). You should not consider Libra as a replacement for base currencies or as a means to store savings – but as a payment tool, Libra cryptocurrency is incredibly convenient. The main disadvantage of Libra is that it is based on a private Blockchain developed by Facebook and is not a fully decentralized structure – to validate transactions, nodes will need to get permission from the system.
Facebook Libra scope
As the project develops, Facebook plans to expand the scope of Libra and take it beyond its own online services. The idea of the company is to use cryptocurrency as an alternative to real money in cafes, restaurants, shops, public transport and when traveling by public transport.
To use Libra and a specialized wallet, Calibra Facebook will develop a separate application that will allow you to buy tokens. Payment will be made from bank accounts or at physical points of sale. Similar points can be opened by Facebook partners, and payment in them will be charged, including in cash.
If successful, Facebook can force about 2.7 billion of its general users to pay for purchases online with Libra. Some experts have already predicted that this cryptocurrency will be able to replace the dollar and the euro.
Of course, this will only work if the new digital money can quickly process a large number of transactions and be not only safe but also easy to use. To solve these problems and to replace Visa or Mastercard so far it turned out neither in Blockchain bitcoins, in Blockchain Ethereum, nor their alternatives.
Do not forget about the regulation of cryptocurrency in different countries, which can also cause a lot of trouble for Facebook.