blockchain digital currency
The famous social website Facebook lead by Mark Zuckerberg, Andrew McCollum, Dustin Moskovitz, Eduardo Saverin, and Chris Hughe, launched in 2004. Recently the company introduced a new form of cryptocurrency called Libra. It is a missioned blockchain digital currency.
As of now, the currency and network do not exist. Only a rudimentary experimental code has been released, and the company plans on launching it in 2020.
All actions like payment, telecommunication, online marketplace, and other works are to be handled by Libra Association.
The cryptocurrency introduced by Facebook is completely divergent from another cryptocurrency such as Bitcoin. On the one hand, where Bitcoins makes use of permissionless blockchains, Libra, on the other hand, is not decentralised and relies on trust in the Libra Association as a de-facto Central Bank. Don't use plagiarised sources.Get your custom essay just from $11/page
As stated by the President of Switzerland, the Libra project, which was launched by Facebook, has failed in its present form and needs reworking in order to be approved. Cryptocurrency is seeking regulatory consent in Switzerland as of now.
As stated by Ueli Maurer, the finance minister and outgoing president of Switzerland, he feels that Libra doesn’t stand a chance in its current form as it will not be accepted by the central banks due to the basket of currencies underpinning it.
He also continued that the project in its presented form, as a result, fails to deliver what was expected from it. He stated all this during an interview with Swiss broadcaster SRF.
Libra did not directly respond to the request of answering back on this comment.
The Geneva-based Libra Association is responsible for issuing and governing further plans for this facebook led digital currency. This Association has raised several concerns among the regulators and politicians, ranging from privacy to its potential to influence monetary policy and change the global financial landscape.
David Marcus of Facebook, who is one of the officials running the project, has said that the regulatory hurdles could lead to the delaying of the launch date beyond June, which was the initially planned launch month.
This cryptocurrency is going to be backed by various reserves of assets like bank deposits and government debt. This is held by a network of custodians. That structure is aimed towards fostering trust and avoiding the price swings that swarm other cryptocurrencies.