Earlier this summer, Facebook dropped its plans to launch Libra- a new global cryptocurrency. Libra states that 1.7 billion adults currently don’t have access to a financial system or bank, so Facebook believes that a new, stable cryptocurrency could be the solution to this, and other related problems.
What is cryptocurrency?
The long and short of it is cryptocurrency is money. Much like cash, you can use cryptocurrency in exchange for goods and services. Cryptocurrency is best understood like casino chips, you’ll still need to exchange real currency for the cryptocurrency! Make sense?
How does it work?
All cryptocurrencies work using a technology called blockchain. What’s a blockchain? We don’t know. LOL Best explanation is that it is a secure technology that tracks and manages all the transactions made with the cryptocurrency.
Facebook has its own cryptocurrency? That’s cool!
Yup! Back in June, Facebook announced Libra, its cryptocurrency. According to Facebook, it should become a global currency for billions of people. How will they make this happen? Our guess is making it mandatory to buy and sell with cryptocurrency on Facebook. So Facebook Market Place and Facebook Ads manager will all be governed by Libra.
How does the govt. feel about this?
While Libra doesn’t launch until 2020, lots of people, are not happy about it. Just look at what Trump had to say.
Yikes. But there are some companies that are on board, however. Take a look at the list of companies backing Libra.
Outside of the government and banks, people simply don’t trust Facebook. One of the biggest worries amongst us regular folk is that Facebook is going to use payment data to target advertisement. They’ve promised that they won’t. But we’ll see. Now that you’ve got a brief understanding of Libra, what are your thoughts? Will you use it? Let us know in the comments.