Zuckerberg's Calibra & Libra Goes Live
Buzz surrounding Facebook's cryptocurrency has been making headlines since the beginning of the year. Many have speculated how Facebook's coin will work and what it will be called. Most rumors guessed that it would be called "Globalcoin" and was referred to as such in the media for months. Earlier today Facebook released 2 websites related to the project: Libra the currency and Calibra the wallet.
Unfortunately, shortly after the release both websites collapsed, likely due to the massive number of visitors curious about the project. Fortunately, clever social media users screen-capped and downloaded whatever they could, including Libra's whitepaper and Calibra's customer commitment.
What's Libra All About?
It seems that many in the media have gotten it wrong. Libra is not exactly a stable-coin with its value pegged to the dollar in a similar manner to Tether. As per the whitepaper:
"Instead of backing Libra with gold, though, it will be backed by a collection of low-volatility assets, such as bank deposits and short-term government securities in currencies from stable and reputable central banks.
It is important to highlight that this means one Libra will not always be able to convert into the same amount of a given local currency (i.e., Libra is not a "peg" to a single currency). Rather, as the value of the underlying assets moves, the value of one Libra in any local currency may fluctuate"
Transfer of Funds & Exchanges
Users will be able to transfer funds easily on Facebook and its sister companies such as Whatsapp & Instagram. All transfers of funds will be recorded on Libra's blockchain, which will launch in 2020. The whitepaper also makes mention of being traded on various exchanges, although none were listed.
The Crypto Community Reacts
Many in the crypto-community have reacted in the past with either indifference or contempt. During N.Y. Blockchain Week parody "ZuccBucks" were circulating amongst the crowd. Seeing that Facebook's Libra is not exactly as expected, it will be interesting to see their reaction.
One must keep in mind that Libra wasn't primarily meant for techies or hardcore cryptocurrency fans, but for everyday users. This seems to be the first venture of "Big Tech" in a cryptocurrency project other than possibly Telegram's TON. It seems to show that interest in blockchain & cryptocurrencies is far from over.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado