Since Facebook revealed the details of Libra, it has generated mixed reactions. The cryptocurrency is designed to help you make purchases or send money to people with little or no charges. You can cash out your money at local exchanges using the Facebook-owned Calibra wallet or other third-party wallets.
Facebook won’t be in total control of Libra assets and stocks; it only gets a single slot in the governing body, just like every other founding member of the association. Every aspiring member has to invest at least $10 million into the project’s operation. Facebook aspires to garner over 100 founding members before it officially launches Libra, and membership is open to anyone who meets the criteria. This alliance will help to boost the open-sourced Libra Blockchain. The goal of creating Libra is to reinvent money and give the global economy a makeover so that everyone will live a better life.
Since Libra is not yet released, there is no much data about its stock presently.
At the coin’s inception, a lot of big names in the payment processing and marketplace industry welcomed the idea. The likes of eBay, Mastercard, Visa, PayPal, Uber, and Stripe were part of the founding members. However, most of them abandoned the project as soon as the coin came under scrutiny by the United States government, the European Union, and other regulatory bodies. Particularly, the exit of PayPal in October 2019 made Libra’s stocks to nosedive.
With Shopify’s recent announcement in which it stated that it is a member of the Libra Association, some optimism has started to set in for the stable coin. Giving that Shopify will be adopting Libra’s blueprint and integrate it into their system, which houses over 1 million users, the cryptocurrencies stock is definitely bound to rise over time. The adoption of Libra means that Shopify merchants and buyers will pay little or no charges for every transaction conducted on the platform. This is a step in the right direction as it will help boost e-commerce in developing countries.
Facebook states that its coin will be more stable than every other cryptocurrency because it is working on strengthening the factors that others have failed in. It plans on Linking Libra to a collection of different global currencies and low-risk bonds, thereby providing a stable floor for the price level.
One of the major areas where other cryptocurrency developers have failed over the years is their inability to check induced volatility and price spikes. It is one of the three major traits that every successful currency has; the other two are durability and acceptance.
Facebook happens to have checked two boxes (durability and stability). The last one is indeed a hard nut to crack as government bodies are not comfortable with Libra’s ideology. Also, they want to ensure that it won’t be another money laundering option for terrorists or another means for Facebook to tamper with data. This has been a major factor affecting Libra’s stocks and release. If Facebook is able to convince the regulatory bodies, maybe their bright idea will be a turning point for so many businesses.