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  • Myles Shin

Today I Learned... About Libra Cryptocurrency by Facebook


Facebook, along with a couple other huge companies, will launch Libra, a new form of cryptocurrency, in the near future. It is planned to launch next year, 2020, and will try to compete with giants like Bitcoin. However, Libra has something up its sleeve. It will have a financial backing so that the value of the Libra won't fluctuate as much as other cryptocurrencies with no financial reserve, like Bitcoin. Libra has over 20 companies inputting $10 million in the financial reserve so the price of a Libra doesn't fluctuate. This way, it will be more stable, like regular US currency

Facebook sees many possibilities for Libra. They see it as a game changer and a leader in the cryptocurrency business. They want it to expand and be the norm when people talk about or buy cryptocurrency. They also see it as a way for low income families, who can't afford to have bank accounts, to be able to purchase things. if they have Libra, then it doesn't matter that they don't have enough starting money to make a banking account; they could just pay in Libra. I personally don't see cryptocurrency making a huge impact in our world anytime soon, but maybe Libra can change that. Everyone is fine with credit cards and Venmo. Investing in cryptocurrency right now is not really buying a currency but gambling with your savings. Libra needs to stable enough to change people's mind about cryptocurrency.



Sources:

Chappell, Bill. “Facebook Unveils Libra Cryptocurrency, Sets Launch For 2020.” NPR, NPR, 18 June 2019, www.npr.org/2019/06/18/733701971/facebook-unveils-libra-cryptocurrency-sets-launch-for-2020.