Facebook has finally ended the rumors regarding its own digital money as earlier today; the Silicon Valley tech giant has officially confirmed the launching of Libra, a crypto-based currency that the company has been working on. Reports further suggest that the new money is backed by several huge companies, including Paypal, VISA, and Mastercard.
The new currency is said to be banked on real assets, and Facebook is waxing the idea of secured global money. The three pillars of the new currency are: It is built on a secure, scalable, and reliable blockchain; it is backed by a reserve of assets designed to give it intrinsic value; the independent Libra Association governs it tasked with evolving the ecosystem.
Furthermore, Facebook confirms that the new currency will be called “Libra,” which promises that the currency will be accessible to everyone who wants to use and with relative ease. Also, the digital money says that users can be confident that they can use Libra and that its value will remain relatively stable over time.
Consistent with previous reports, the new currency will be overseen by a group of multinational companies across different industries called the Libra Association. The Libra Association is an independent, not-for-profit membership organization headquartered in Geneva, Switzerland.
“The association’s purpose is to coordinate and provide a framework for governance for the network and reserve and lead social impact grant-making in support of financial inclusion,” a press release from Facebook said.
Facebook hopes that the Libra Association can reach around 100 members by 2020, the target date for Libra to start rolling off to users.
The currency, Libra, will also operate through its own blockchain technology, the Libra Blockchain. The goal of the Libra Blockchain is to serve as a solid foundation for financial services, including a new global currency, which could meet the daily financial needs of billions of people.
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