Sometimes in 2018, there were rumors going around about how Facebook, the largest social media platform in the world is working on a cryptocurrency. Many people said it cannot be true, but others said it might be true.
On Tuesday 18th June this year, Facebook cleared the doubts and announced that it was indeed working on a new global cryptocurrency called Libra.
So, what exactly is Libra?
Libra is simply a cryptocurrency or digital currency that is little like PayPal and Bitcoin and will be available to individuals without credit cards or bank accounts. With Libra, people will be in a position to make payments easily through Facebook’s apps as well as WhatsApp.
In other words, Libra is digital money that you can easily access through apps and use it to send money to your friends and families or pay for things. Libra payments will basically be written into a new block chain which is still in its development stage. Facebook Libra is basically backed by a reserve of real assets and currencies and during its launching, Facebook announced that it will grow to not only be accepted but also adopted globally.
Without a shadow of a doubt, Facebook is moving the world with a storm and besides creating a social media platform that was embraced by people of all ages, it will now create a worldwide global financial network based on digital money.
When will Libra be launched?
According to Wired’s history of the coin, Facebook started working on Libra in the first quarter of 2018 and in the same year, some details leaked about the coin. Most people were unclear about what Facebook was up to until it launched a white paper and website in June 2019.
According to sources, Libra will be launched in the first half of 2020 and as early as now, people are looking forward to that time. Surprisingly, Libra already has signed up partnerships such as Spotify, Naspers, Mastercard, and Uber, and Facebook hopes that before the digital currency is publicly launched, it will have about 100 partners to strengthen its reach and credibility. So, if you heard about it and you are already eager, relax and wait and by July 2020, Libra will be available on Facebook Messenger, WhatsApp, and other Libra partners.
The inspiration behind Libra
Facebook’s main goal of creating Libra is to empower all the individuals without bank across the world and make life easier for them by providing access to a global financial system. Facebook has more than two billion users across the world but not all of them have bank accounts.
Fortunately, when its finally launched, any user will be able to send money to their friends and families with their mobile phones as easy as they send a text message. According to the Pew Research Center, more than 5 billion people in the world own a mobile device and because the number is expected to increase, it means that more people will benefit from Libra.
How Libra will save you money?
We are living in the 21st century where making money is not always a walk in the park. For that case, some people are willing to go above and beyond to look for stable employment even in foreign countries.
For instance, African people are flying across North America and Europe to try and make ends meet but when sending money to their relatives back home, they are being charged a lot. According to the World Bank, 2017’s remittances to sub-Saharan Africa increased to $37 billion and the number is likely to increase to $40 billion this year. Well, we cannot deny that these remittances are crucial in contributing to national GDP, but the cost of sending is too high.
Fortunately, the high cost is about to come to an end and Libra will be the savior. Anyone working abroad will have a simple and fast way to send money to families and friends back home and still end up with more cash.
Most importantly, Libra will be more convenient because you only need a phone and the Facebook app to make the money transfers. With Libra, you can as well buy anything you want online or cash out at your nearest local exchange point such as grocery store and spend it using Facebook’s own Calibra wallet which will be built into the Messenger, WhatsApp, or its own app.
We are in the 21st century and when we think that we have everything we want, something else even better crops up. It all started with Facebook and people couldn’t hide the joy they had to connect with people from all corners of the world, chat and even share photos.
This year, Facebook announced that it will be launching a digital currency, Libra before July 2020. By now, people are excited and eagerly waiting for the official launch and trust me, this digital money will make a difference in people’s lives.
Generally, Libra will enable users to excellently send money to others or buy things with nearly zero fees. Surprisingly, money transfer with Libra doesn’t require you to have a bank account and this means that it will be embraced by people of all ages across the world.