Libra is set to become the new currency for the world in 2020. This will reduce transaction fees and give 1.7 billion people without a bank account access to the financial world, promises Mark Zuckerberg.
Recently, Mark Zuckerberg has presented his plans for a new digital currency. Together with important partners like Visa, Mastercard, Paypal or Booking.com, Spotify, Uber and Vodafone, Facebook wants to give the world a global parallel currency, called Libra, which will be pegged to major established currencies. Experts expect that the value of a Libra will be about the same as a dollar.
The Libra Reserve will control the Geneva-based Libra Association. In addition to Facebook, 27 other founding members are represented in this non-profit organization. By the time Libra is launched, there will be 100 partners, each with $ 10 million to spend. Together, the members of the Libra Association determine how the money flowed into the Libra Reserve should be assessed in order to keep Libra’s price as stable as possible. However, the partners will also operate those computers on which the Libra blockchain is running.
With what advantages should Libra convince the users?
Libra should make money transactions easier for everyone. With just a few clicks you can send money worldwide. Later, payments will be possible in the restaurant or shop.
The new currency should also solve a whole bunch of global problems. For people who do not have a bank account, Libra could provide access to the financial system. After all, 1.7 billion people, so about 31% of the world’s population do not have a bank account.
However, one billion of them own a mobile phone and as many as 480 million have access to the Internet.