Libra is the new cryptocurrency of the social media giant, Facebook. The digital currency Libra will be available to the users of Facebook services like Messenger, WhatsApp, and Instagram.
The Libra transactions will be recorded on a blockchain which offers a tamper-proof ledger that runs across multiple computers. The blockchain technology forms the backbone of Bitcoin and other cryptocurrencies.
The day-to-day rate of Libra would be pegged to the average value of a basket of world currencies, made up of U.S. dollars, U.K. pounds, euros, and Swiss francs.
How Libra would be different?
- Libra would be more stable than Bitcoin since Libra is backed by a reserve fund whereas the Bitcoin just floats.
- Bitcoins are recorded on a public blockchain which allows anyone to build on it whereas to build on Libra s blockchain, developers must seek permission from Facebook and its partners who administer it.
Addressing Privacy Concerns
To ensure the privacy of the users is not compromised due to the potential availability of the data about consumer spending behaviour, Facebook has planned to set up a separate wallet company Calibra to ensure the user data from Calibra is not combined user data with its other apps, like Facebook and Instagram unless the users accord a permission.