Will there be some flaws?
Facebook is finally ready to reveal more details about its cryptocurrency codenamed “Libra.” According to one source, Facebook plans to release a white paper on June 18 explaining the basics of its cryptocurrency.
Facebook will first disclose the white paper on cryptocurrency on June 18. Laura McCracken, head of financial services and payment partners for the Nordic market, told German Economic Weekly (WirtschaftsWoche) ) Journalist Sebastian Kirsch, and Laura McCracken also confirmed that Facebook’s cryptocurrency will be linked to a “basket” of currencies rather than a single dollar, with the aim of being more effective Prevent price fluctuations.
Facebook’s payment business executive Paulette Rowe attended the Money2020 Europe conference in Amsterdam on Tuesday, and Laura McCracken watched his speech, although she did not join David Marcus. ) Facebook’s secret blockchain team, but revealed that a white paper will be released on June 18. Interestingly, Laura McCracken initially thought that Facebook had made the date public, but it didn’t.
After hearing the news of the white paper release time, a communication manager of the Facebook blockchain team contacted the media and hoped to delete the news, which seems to be “sitting” from another angle. In addition, The Information reporters Alex Heath and Jon Victor also reported that Facebook’s cryptocurrency program will be released later this month.
However, Facebook declined to comment on any information about its cryptocurrency items, and said that if there is a problem with the partners, the release time may change, and their goal is to officially issue cryptocurrencies in 2020.
The debut of Libra will open a new era of business and social network payments. Facebook cryptocurrencies can be used to provide low-rate (or even free) payments between friends, and to provide remittances to overseas migrant workers’ families.
Although we don’t know what information will be disclosed in the Facebook cryptocurrency white paper, we can analyze the following five aspects of our Facebook blockchain project:
Instead of using the name “GlobalCoin” reported by the BBC, Facebook may use the “Libra” code as the public name of its cryptocurrency. According to Reuters, Facebook has registered a company called “Libra Network” in Switzerland to provide financial services. The word “Libra” may come from “LIBOR”, which is an abbreviation of the London Interbank Offered Rate, which is used as the benchmark interest rate for interbank lending – “LIBOR” applies to banks and “Libra” applies to people.
Facebook’s cryptocurrency will be a stable currency designed to provide a stable price to prevent discrepancies and other complications in the course of payment or transfer due to price fluctuations. According to The Information, Facebook has approached financial institutions to provide a $1 billion “stump of” global legal tender and low-risk bonds as collateral for its stable currency. Not only that, but Facebook is also working with multiple countries (such as India) to prepare for pre-testing its stable currency.
Facebook’s cryptocurrency will enable zero-cost transfers through its products (including Facebook Messenger and WhatsApp), and they also rely on merchants to accept cryptocurrency payments and may offer registration bonuses. The Information also reported that Facebook also wants to launch ATM ATMs so that users can exchange legal currency and traditional assets directly with their cryptocurrency.
The Facebook Blockchain project is headed by former PayPal President and Facebook Messenger Vice President David Marcus, whose team includes Kevin Weil, former vice president of Instagram products, and former financial operations department of Facebook. The head of the company, Sunita Parasuraman, according to The Information, Sunita Parahulamman is mainly responsible for regulating Facebook token funds. Although Facebook announced some partnerships that led to a lot of leaks, their confidential work at Facebook headquarters is still doing well, and other employees don’t know the specific operation of the Facebook blockchain team.
Facebook is planning to create an independent foundation to oversee its cryptocurrency, and requires participating companies to pay $10 million to run a node that can verify Facebook cryptocurrency transactions in exchange for governance rights to the token network, as well as node operators. May receive economic benefits. By introducing a degree of decentralization in this global monetary project governance, Facebook can avoid holding too much power.
Source: Golden Finance
Note: This is a personal opinion of the writer from the source and does not constitute of any investment advise. Readers are encouraged to seek professional advise from licensed or authorised investment professional or make their own sound judgement prior to investing in any cryptocurrency.