Facebook’s Libra is like any other cryptocurrency powered by blockchain technology.Facebook also announced a dedicated wallet app called Calibra, which will be built into WhatsApp and Messenger as well, to let users store and use these Libra coins.
- It wants to be a ‘global currency’, one that can be used to transfer money anywhere in the world without any transaction fees.The claim is that Facebook’s Libra will be accessible to anyone with a smartphone and network connection , and will aim at financial inclusion.
- Uniqueness from other cryptocurrencies-Many cryptocurrencies today (e.g., Bitcoin and Ether) have no underlying assets to back them. As a result, speculation and investment have been primary use cases, as with a potential for substantial appreciation many people have acquired these coins hoping to sell them at a higher price later.Libra will also be backed by a reserve of assets designed in order to “give it intrinsic value” and ensure stability, which is not seen in typical cryptocurrencies.These assets includes securities and fiat currencies (like dollar, pound) etc as part of this reserve.
- Libra is also being governed by the independent Libra Association, which is not what you see in typical cryptocurrency.
- Cryptocurrency is illegal in India and the draft bill right now is recommending a maximum of 10 year punishment for those who mine, trade, buy or sell these.
- In India, if the bill passes, trading in cryptocurrency could result in hard punishment.
- Calibra is the digital wallet from Facebook to let users store these Libra coins.
- Facebook says this is a separate company, and data will not be shared with them and it will respect user privacy.
- Calibra will have a dedicated team of experts in risk management to prevent fraudulent use.
- Also if someone loses their Libra coins from the Calibra wallet, they will refund users. Libra will also work with other third-party wallets.
- Calibra will also be added to WhatsApp and Messenger.
- A new programming language is also being built for Libra called Move, which the organisation claims is more secure and private.
- The Libra Blockchain will record the history of transactions and states over time, rather than the typical blockchain where each transaction is added a new block.