Though this type of cryptocurrency is pegged to the USA dollar and is therefore more stable than other types of currency like Bitcoin, whose value regularly shifts by hundreds every couple weeks, Facebook will apparently look for outside help to manage the project.
If Facebook does push its tokens live, it will be to a user base larger than any cryptocurrency ever before: about 2.3 billion people use Facebook around the world as of the first quarter of this year.
Facebook is reportedly planning to ramp up its plans on the launch of its own Cryptocurrency.
What's interesting is that Facebook will pay those employees working on Libra directly in cryptocurrency rather than actual money, if they so desire. The aim here is to provide the currency with stability and avoid price fluctuations (what is called a stablecoin).
However, there are rumors that the currency will not be called "GlobalCoin", but will now be known as Libra, the code name for the project. Facebook "has courted dozens of financial institutions and other tech companies to join an independent foundation that will contribute capital and help govern the digital currency".
As reported last week, Facebook is expected to unveil its digital token this June and is looking for outside backers that would act as "nodes" of this new coin network.
Facebook cryptocurrency will become a powerful force in developing countries where Facebook intends to sell the product.
Meanwhile, Long states that Bitcoin's "scarcity", as opposed to the Facebook coin's forthcoming ubiquity, means that "people will migrate over time to the most honest ledger for storing their hard-earned wealth - and that's not fiat currencies or derivatives thereof, including Facebook's cryptocurrency".
Facebook will allow users to trade, store, and exchange its stablecoin via its apps such as WhatsApp, Messenger, and Instagram, with possible access through physical ATM-like machines. However, there was not much information regarding the same in public domain as of now.
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