The cryptocurrency that the Libra association, created by Facebook, wants to launch has not yet seen the light of day and therefore it is not yet available on the markets. However, despite the reluctance of some governments and the defection of several partners, Facebook’s goal remains to launch Libra in the second half of 2020 and there are already clues to imagine how Libra will be accessible to as many people as possible. .
Even though the company of Mark Zuckerberg announced that it would not launch its currency without the agreement of the various regulators, observers remain cautious because if legally nothing seems to be able to prevent its launch, States are worried about the immense potential of Libra and the consequences on existing financial markets.
An ever-present opposition from governments
The arrival of a new currency that could be used on a large scale worries most governments who fear that their monetary sovereignty will be called into question. The Minister of Finance, Bruno Lemaire, did not hide his concern at the arrival of the Libra and is displayed as a fervent opponent of its release. Russia has announced that it will not legalize it and Washington is still not reassured.
We will therefore have to wait for the next few months, which are likely to be decisive, to know whether Libra will be put into circulation during the year. Looking forward to fire green regulators, we know more and more about Libra and how it works.
Libra, a different way of bitcoin
First of all, it should be noted that Libra, as it is presented to us today and even if it is based on a blockchain, is closer in its functioning to a virtual currency than to a cryptocurrency as can be the Bitcoin. Unlike the latter, whose price varies according to supply and demand, the Libra will be indexed to a basket of currencies comprising mainly, the dollar, the euro, the yen and the pound sterling in order to make it as stable a currency as possible.
The avowed objective of Facebook is to make it a real currency of exchange, easy to use even for those uninitiated to cryptocurrencies. This stability and this stated desire to be open to as many people as possible as a virtual currency, used daily, clearly shows us that it will not directly compete with other cryptocurrencies already in place. The launch of Libra is unlikely to have a significant impact on them.
What distribution methods can we expect?
With its subsidiary Calibra, Facebook wants to provide all smartphone owners with a virtual wallet in which it will be possible to buy, sell and store Libra. At first, it will also be possible to exchange or transfer them via others applications of the group such as Messenger, WhatsApp or Instagram. This potentially represents more than 2.5 billion daily users.
Once Libra is fully operational, it should appear on the various trading platforms alongside the others. cryptomonnaies.
What you must remember
- Despite a reluctance from the main governments, Mark Zuckerberg’s company still hopes to be able to launch its cryptocurrency in 2020.
- Libra should be available via the Calibra virtual wallet, a Facebook subsidiary.
- Its value will be indexed to a basket of global currencies and it will be usable in the Group’s various applications, such as Messenger and Whatsapp.
- Once operational, Libra should also make its appearance on the various existing trading platforms.
You will also be interested
Interested in what you just read?
