Litecoin is one of the first open-source altcoins based on the original Bitcoin code. It was initially a strong competitor to the first cryptocurrency. However, as the cryptocurrency market expanded, Litecoin’s popularity gradually declined.
Facebook began negotiations on the launch of a digital currency
In June 2019, news about the launch of a new digital cryptocurrency project announced by the developers of the social network Facebook began to appear on the network more and more often. The project was developed by the Libra association, which includes 27 popular structures: Facebook, PayPal, Uber, Mastercard, Xapo, eBay, Booking Holdings, Vodafone, Spotify, Coinbase, Visa and many other well-known services.
The Libra Association announced that it plans to issue fiat currencies in digital format in April, as well as an “electronic composite” of each of its coins. According to one source of information, it is planned to issue a crypto coin that will have a 1: 1 ratio with the dollar, that is, the coin rate will be directly linked to the US dollar.
The facebook libra team has scheduled a limited launch of a new cryptocurrency for January 2021. Most news sources report that the exact release date is not yet known, as it will be guided by the approval of the Swiss Confederation's Supervisory Authority for the entire financial market.
The negotiations of the social network with the US Commodity Futures Trading Commission are also at an initial stage. The organization specializes in the regulation of financial instruments and all products related to cryptocurrency projects must meet strict requirements. The head of the regulatory company Christopher Giancarlo first wants to determine whether the idea of Facebook is included in his terms of reference. The chairman reports that at the moment it is unclear how the GlobalCoin cryptocurrency project is planned to be used and whether it will be the basis for developing a product similar to Bitcoin futures, which the company regulates.
Libra cryptocurrency, features and forecasts
The developers of the Facebook Coin project said they want to develop their own global Libra cryptocurrency, which will differ from other digital cryptocurrencies in that the price of each part of the coin will be as stable as possible. The stability of the crypto coin will have to be maintained thanks to the valuable capital and the account of the wallet of currencies, which together will create Libra Reserve. These can be valuable government documents and deposits from the most reliable central banks.
The purpose of this cryptocurrency is to strengthen itself as the world's only cross—border electronic currency with a low percentage of transaction fees. Thus, Libra representatives will be interested in the progressive financial industry of users who already have access to the Internet world from relatively cheap smartphones, but have not yet opened a personal bank account. If you look at the statistics, it says that the number of such users reaches half of the entire adult population of the planet.
The libra digital currency will appear with every purchase of it for the state currency, and as a result of exchanges back, it will die.
As a result, the crypto coin is covered with real money, which is sent to the reserve, the developers note. The Libra association will pay the available money from the reserve as dividends for investors and for the maintenance of the cryptocurrency itself. For example, every year, due to the large commission on traditional payment systems, migrants lose about $ 26 billion on transfers of earned money, which is a very progressive problem.
Calibra Digital Wallet for Libra
Calibra is an electronic wallet that was created by the Facebook management company, with the aim of securely storing the user's electronic Libra money and minimal commissions for money transfers around the world. This wallet will be released in 2020 as a unique application supported by Android and iOS. The main goal of the developers is to make the wallet accessible to users of absolutely all countries.
The predicted advantages of the Libra wallet:
- low commissions for transactions;
- fast speed of transaction execution/loading;
- ease of use: you can make transactions for the exchange / transfer of money in a matter of seconds with just a few touches;
- support of managers in WhatsApp and Messenger 24/7;
- integration of Calibra and other Facebook projects;
- absolute security and confidentiality of all transactions, there is also the possibility of a refund in case of scammers;
- Calibra is also used for simple things like grocery shopping, paying utility bills or taking the subway.
In May 2020, Facebook changed the name of the digital wallet to Novi. After the renaming, the project was transferred to the management of a subsidiary branch.
Isn't such a tight connection between the social network Facebook and the Calibra digital wallet dangerous?
Representatives of the platform project convince that the connection between Facebook and Calibra is not dangerous. All personal information of users is securely protected and is not transferred to third parties. The Facebook network will not have access to transactions, purchases and personal data of users in order to use this information for fraud or advertising sales. There are exceptions that relate directly to the security of transactions, and the possibility of importing contacts of your friends from the Facebook social network into the Calibra database.
The release of such a new cryptocurrency immediately became a top topic for discussion, but like all other Facebook products, it was criticized by regulators of the European Union and the United States. The entry into the Libra cryptocurrency market should be accompanied by regulated laws that will confirm the reliability and formality of the new digital coin.
Later, Libra developers announced that they plan to make the crypto coin an analogue of the payment system and add coins issued by central banks.
As we can see, the plans and forecasts of this project are very positive, although they have several inaccuracies in the regulation of laws. What will happen next with the project, we can only observe.
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