Renowned social media giant Facebook announced its plan to enter the cryptocurrency market with Libra. Their intent is to make money transfer painless, like sending messages and images. The currency is being built by a collective of other top firms that will universally accept the payment method. Their proposal is to create a safe, stable coin, by leveraging the network affect of their existing platform for distribution. The hope is for people all around the world to have access to equal financial opportunities.
Some of the challenges the collective looks to solve:
- 31% of the world’s population don’t have a bank account.
- High costs and transaction charges for global transfer
- The un-banked often pay higher fees for cash based money movement.
We understand the motive and vision hidden behind designing most cryptocurrencies, including Libra, to foster open access to financial markets. The Libra Blockchain is a programmable and decentralized database developed to support a more constant cryptocurrency that will have the potential to serve as a well-organized channel of exchange for billions of people all around the world. Libra is said to be setup as a separate independent association, not focused on profits. The Libra protocol scheme leverages blockchain technology to develop a financial infrastructure openly accessible, lowering hurdles to entry, and enhances reach to financial services.
Bringing digital financial services closer to all, improving ease of access will undoubtedly impact the makeup of our current financial systems. Let us know your thoughts on the impact this will have in the comments below.