Home Cryptocurrency Facebook’s Libra Cryptocurrency: What Are The Creators Plans?
Facebook’s Libra Cryptocurrency: What Are The Creators Plans?

Facebook’s Libra Cryptocurrency: What Are The Creators Plans?

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The giant of social networks is seriously engaged in the development of its own cryptocurrency in the summer of 2019, namely on June 18, Zuckerberg finally announced the long expected launch of Facebook’s own cryptocurrency Libra. This is not global launch of the project, which is actually scheduled for early 2020. At the moment, negotiations are still underway with online merchants, suppliers and advertisers regarding the acceptance of this kind of Facebook cryptocurrency Libra.

To develop and launch this cryptocurrency, a global structure was created consisting of 29 financial and also technological companies. Facebook has recently received support in this project from companies like eBay, Mastercard, PayPal, even Uber, Visa and other largest world-famous players in the designated areas. The consortium from the head office in Switzerland is managed by Libra Association.

This project is like a decentralized open platform based on famous Blockchain technology. Calibra wallet was also specially designed for this cryptocurrency. Judging by the white papers, as well as advertising materials, Libra is aimed mainly at emerging markets, where many people do not have bank accounts, but they have access to the Internet and use Facebook products, such as Messenger or WhatsApp. This should allow them to make remittances, receive financial support and make electronic payments, while it is assumed that for ordinary users transactions will occur without fees.

Everything seems to have plausible goals and it looks like the usual launch of another cryptocurrency, and many looking at the scale of the organization even predicted the role of Bitcoin replacement. However, some experts in the field of finance suggest that the ambitions of the creators of Facebook cryptocurrency Libra extend far beyond the seizure of the cryptocurrency market.

Facebook-cryptocurrency-Libra-does-not-have-sufficient-decentralization
Facebook-cryptocurrency-Libra-does-not-have-sufficient-decentralization

If you look more closely at the company’s plans, you will notice that Libra seems to be striving to become one of the fiat currencies, so it is more of a threat to governments than to other cryptocurrencies.

In fact, Facebook cryptocurrency Libra does not have sufficient decentralization, despite the fact that many different companies have become founders. The fact is that these companies will determine the way the new e-currency works, which means they can manage it. This will already contradict the principles of independence and decentralization, which is appreciated by cryptocurrency enthusiasts around the world.

In addition, the white paper of the Libra project describes that access rights to the system will not be equal, at least in the first five years, starting in 2020, when the public launch is planned, because otherwise the project will not work correctly. This is alarming, because it gives the creators the levers of currency control for an indefinite long term, because the reasons for extending special access rights can always be found or invented. Undoubtedly, the creators of any product have the right to do whatever they want with it, but then this is not a full cryptocurrency, the basic principles of which are decentralization and the absence of any special access rights.

It is planned that Facebook cryptocurrency Libra will be provided with securities, but will not be linked to any of fiat currencies. This should protect the electronic currency from the high volatility inherent in cryptocurrencies. The creators of Libra want to make it a world currency with its independent value and have fewer flaws than the current one. These ambitions of cryptocurrency Libra creators strained the governments of the world and caused a negative response to such association goals. However, it is no secret that Mark Zuckerberg is already playing political games in different countries, and the wealth of funds leaves no doubt that he will be able to lobby for his interests in political circles.


Some governments and central banks are already speaking in a positive way about Libra and the opportunities that currency can bring. It can be a powerful tool for controlling people, by tracking all economic transactions.

Lisa Mcdowell Expert in loans, credit cards, insurances, and your personal, responsive guide to a bright financial future.

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