Facebook published detailed information about how the libra cryptocurrency it helped create will make it the most powerful cryptocurrency startup in the world by DelRayMan
Believe it or not, Facebook will be the company that brings cryptocurrency to the masses. Today the social network giant published detailed plans for a cryptocurrency called libra, backed by currencies from the most trusted central banks around the world, and accessible even without a bank account.
Considering that cryptocurrency technology was originally designed to take power out of the hands of giant banks that were deemed too big to fail, this masterful business maneuver by one of thecompanies in the world is bound to reek of co-option among the early users who helped build cryptocurrency up to its current success.
Libra will be created and secured by a separate organization called the Libra Association. The association is in conversations with multiple regulated banks around the world but has not yet confirmed which will custody the assets. The libra coins will be available for purchase at any supporting exchange, stored using Facebook’s Calibra wallet or any competitor’s wallet, and spent with any merchant or individual in the world who has a libra wallet.
This is a crucial part of the elaborate business model revealed today, and Facebook's first possible cryptocurrency-based revenue stream. Both the amount invested by the founding members and the funds used by customers to purchase libra, will then be invested in low-risk, low-yield assets, according to documents provided to.
While the association appears in some ways to be noncompetitive, in that it has an open call to any potential member who meets the business and technology criteria, it was created in an ecosystem of other similar organizations. While the fiat currency will be stored in a series of unconfirmed banks distributed around the world, the private keys that give users access to the cryptocurrency can be stored by the wallet maker, as is the case with Calibra and other so-called custodial wallets, or stored by the individual as other wallet providers may choose to do, called a noncustodial wallet.
“We expect and welcome people to build noncustodial wallets on top of the blockchain, and there are going to be lots of people around the world who aren’t able to KYC for a number of reasons,” says Kevin Weil, vice president of product for Calibra. “You could be in a refugee camp, you might not have a government identity, and it’s really important that libra is accessible to everybody in the world.
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