A New Cryptocurrency
Facebook recently announced its new cryptocurrency, Libra.
What is the Aim of Libra?
The currency aims to help those who do not have access to banks, as well as to be a payment option that can be used worldwide.
What’s the Catch?
To use Libra, you must have a Facebook account, a smartphone, and money to buy the currency. Already having these three things kind of makes the currency irrelevant. The people Libra aims to help already have other options for payment platforms. For example, the popular platform used in China is Alipay. M-Pesa in Kenya. Zelle in the United States and so on. The only difference is Libra aims to be used across the world which certainly won’t happen right away.
Daniel Döderlein claims the real incentive behind Libra is to get more Facebook users and then exploit their privacy with targeted ads. And Döderlein isn’t the only one questioning Libra. Many banks have criticized Libra for claiming to be a replacement for traditional currencies. But of course, banks don’t want to lose their clientele. On the other hand, Libra aims to help the unbanked so banks shouldn’t necessarily have anything to worry about, right?
So, is Libra Worth It?
Right now, there are many other payment platforms out there to choose from. Although the currency aims to be usable worldwide, it won’t be at the beginning. The best bet is to sit back and watch the show. Maybe it will be great. Maybe it won’t.
Libra also isn’t much of an investment like Bitcoin because it’s just another payment platform (although I could be wrong, it was just announced so more information is sure to come).
Since the announcement of Libra, Bitcoin jumped in value from about $9,000 to $13,000 as of today. Is causation correlation, maybe? But it probably isn’t all due to the announcement of Libra. Libra doesn’t debut until 2020 anyways.
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