(Newswire.net — July 9, 2019) — The news announcement from Facebook last month caused ripples in the crypto market. Facebook announced on June 18th that in the first half of 2020, they’ll be launching a new cryptocurrency called Libra.
Their aim is to bring Libra and digital currency to the mainstream, which is why the news has caused a lot of discussion. Libra has been developed as a digital currency which can be used as a payment method. You will be able to purchase and sell items with it.
Libra can also be used to make global money transfers for very low, near zero fees. This will create competition for traditional international transfer businesses like Western Union for example, where the fees are higher.
The news of Libra’s upcoming arrival has not only created a buzz, but has also been linked to the rapid increase in Bitcoin’s price in June. It is always hard to pinpoint the exact reason behind the Bitcoin growth, but the news is likely to have been partially responsible.
Soon after the announcement, there was a big price increase and the value of one Bitcoin surpassed an impressive $12,000. This was a large increase and investors took note. It was fairly surprising to see, especially at the Bitcoin price has been fairly steady since 2018 which saw the value decrease.
Why has this Libra news affected the Bitcoin price though? A few analysts have attributed the news to giving a natural boost and increased confidence in the cryptocurrency trading market. This in turn has affected prices in existing cryptocurrencies like Bitcoin. The fact that such a powerful company like Facebook has recognised the importance and potential in crypto is a big step forward for digital currencies.
The news has also caught the attention of major businesses and financial establishments, showing them just how crucial digital currencies will be in the future. This is likely to attract further investment into crypto projects and into Libra’s development.
Millions of people across the world may have heard of Bitcoin, but awareness of other cryptos like Ripple or Ethereum for instance is still limited to a fairly select audience. This is usually other traders or investors with an active interest in the cryptocurrency market.
However, with Libra this is certain to change. Libra will be open to millions and is designed to be used by the masses. It’s likely to encourage further cryptocurrency awareness, and hopefully inspire people to consider using crypto.
If you have access to a smart phone or a laptop, you’ll be able to use Libra. You only need access to the Calibra e-wallet, which has been designed by Facebook. Calibra will handle all transactions and can store any purchased Libra coins.
The Calibra wallet app will be compatible with WhatsApp and Facebook’s Messenger service. It’s also planned as a standalone app. With the Calibra app you’ll be able to withdraw funds and make purchases using your Libra funds. The digital funds will be available to spend either online or via local exchange locations.
However regarding the data leaks and privacy concerns that have affected Facebook, customer privacy was a matter quickly mentioned after the Libra news came out. Facebook has argued though that Calibra and Libra has been designed not to breach data or privacy rules. All Libra transactions will be kept separate from a user’s personal Facebook account. Your identity will not be publicly linked to any Libra transactions.
Whilst this answer might not satisfy everyone who has concerns regarding privacy, we’ll all know more about the setup when everything is launched in 2020. It will definitely be interesting to follow the progress of Libra and see how it changes the digital currency world.
For certain though, it’s likely to shake up and bring change to the market, hopefully for the better.