As the paradigm of free currency became admissible in the crypto world. Mr. Zuckerberg is going to play his shot as the world seems to move into a cashless, digital economy especially in the wake of novel COVID-19. The main ambition of Libra is to help the folks who do not have any access to the capitalist banking system, thus to share their fair access in the digital monetary world.
Unlike the Bitcoin and other cryptocurrencies that flow freely and are unpredictable as they are highly volatile. Libra will work as a stable coin. It will be asset-backed mainly by fiat currencies, thus making it low volatile and more sustainable.
To help Libra make a one-tap able currency Facebook is also developing the Libra wallet named Calibra, which would be managed and controlled by a Facebook subsidiary known as Calibra.Inc. Netizens would be able to buy Libra from the Calibra wallet in exchange for fiat currencies. Calibra working as an independent wallet for Libra will also integrate other services of the same group like Whatsapp and Facebook, making it possible for billions of people to share happiness with one click.
Mark Zuckerberg and D.A Marcus (Incharge Libra project) hope to make Libra decentralized in nature in the future. Unlike other cryptocurrencies, Libra would start as a centralized currency and would be decentralized in 2025. Until then big guns like UBER, SPOTIFY, VODAFONE, and other corporate giants will manage the development of the currency and its network. Decentralizing the Libra would need someone to pamper and take care of the organization. That is where Facebook’s unique plan comes in. In which the Libra project would be managed and controlled by the Libra association after decentralization. Making it a non-profit organization comprised of global companies, academic institutions, and social companies.
To have the name on the foundation stone the organization would have to stake $10 million and run a validator role (a computer that approves and validate transactions), the same job as a miner does in the mining of a bitcoin. Participants would have to pass a scalability bar too to make it in the vintage list of founding members. The scalability conditions vary for the type of organization trying to ink their name on the list.
In essence, Libra would allow the transfer of funds for billions of banked and unbanked folks on just one tap!