Will Facebook’s Libra Kill Fiat Currency?

Published August 20, 2019

Facebook will finally launch its very own digital currency, Libra in 2020, and the crypto industry can’t stop talking about it. Users can exchange Libra coins or purchase products and even spend it on interoperable wallet applications. With investors like Vodafone, Spotify, eBay, PayPal, and Uber already backing Libra, experts believe it is only a matter of time before it becomes one of the most significant cryptocurrencies in the industry.

No bank account, no problem

Libra will focus on people who face regular challenges in performing basic financial services and also don’t have bank accounts. Facebook’s subsidiary organization, Calibra, will handle all the crypto dealings so that it can concentrate solely on the safety and security of the transactions. Calibra will allow Facebook users to send Libra to anyone on your mobile phone. However, the receiver must also have a Libra account to receive the payment.

According to experts, Calibra will work within a fraction of a second. Similar to sending a message, you can send Libra to your phone contacts instantly without any transaction fees. Apart from sending Libra to your contacts, you can also pay bills with only a few clicks. This is a significant plus for investors because they can check the value of Libra before making a payment.

Like all cryptocurrencies, the market value of Libra will change. So, you can check the value of Libra before investing. Trading tools like Qprofit System provide the latest details on various cryptocurrencies so that you don’t miss a fruitful deal. Go through the Qprofit System Review, and you will understand why people rate this trading tool so highly.

Clash with fiat currencies

Libra will operate differently compared to Bitcoin. The developers are attaching it to officially sanctioned currencies like Dollar, Euro, and several others. This will help to counter the sudden fluctuations of the crypto market. Libra is not like the traditional crypto coins that grow multiple times so that you can earn significant profits. Instead, it is similar to trading a Euro for a Dollar. That is why it will not kill any of the existing fiat currencies tied to other crypto coins.

Crypto experts think that Facebook’s colossal reach will help during its initial period. Every new cryptocurrency faces a challenging period, especially during the first few months when they have to convince investors why they are popular in the market. With over 2.3 billion users, Facebook will not have an issue convincing investor about how they operate and why they should trust Libra.

Since Libra offers both investment and payment options, people will utilize it more frequently than other cryptocurrencies. For example, you not only can send Libra to your Facebook and mobile contacts but also pay for expenses like buying coffee from your local store, purchasing a metro pass, and so on. Again, the wide reach of Facebook and Libra’s flexibility assures that new user will not face any challenge when it comes to using this digital currency. Like social media, it will connect people through a common payment platform.

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