Facebook introduces its own branch of cryptocurrency called Libra

By Victoria Boland
November 17, 2019

Photo by Pixabay from Pexels.
Photo by Pixabay from Pexels.

Paper money is becoming less prevalent in many economies. One of the reasons is that it is expensive to produce.

Cryptocurrencies, issued by private organizations rather than governments, have made some inroads. Now some social media companies are trying to offer cryptocurrency.

“As we are moving more and more digital the idea of cryptocurrency is basically to withdraw from anything that is physical. Eventually, we will end up in a place where we don’t have dollar bills, we don’t print our money, we don’t make coins. Everything will be digitized so it’s easy to track your transactions in one touch,” Dr. Nune Grigoryan, Asst. professor of communication, said.

Two writers for the money site “Nerdwallet,” James Royal and Kevin Voigt , discuss cryptocurrency as a new way of making payment for online trading, services and purchases of a product. Cryptocurrencies are made up of blockchains, which are mathematical codes to trace payments. One reason many find this market fascinating is the technology security appeal.

“Facebook says Libra will help provide basic financial services to people who lack bank accounts,” according to White Papers. Photo by Pixabay from Pexels.

 Facebook is one of the world’s largest social media platforms. It is branching out in the market of cryptocurrency with its own called Libra. Business writer Bernard Marr said, “Libra is also being designed as a ‘stable coin.’ The value of Libra units in circulation will be tied to assets made up of various currencies stored by the Libra Association.”

“As you may know, Facebook’s mission is ‘to connect all the world’s people.’ Since we often pay or send money to people we are ‘connected’ with, I assume Facebook is thinking there would be an opportunity to ‘transact’ with a Facebook currency,” Dr. Duane Eric Malm, professor of business administration, said. 

“The total value of all cryptocurrencies on June 6, 2019, was about $246 billion,” according to coinmarketcap. Photo by D’Vaughn Bell from Pexels.

The members of Libra include big-name companies such as Visa, Spotify and Uber. It is speculated that there shall be a total of 100 members in the 2020 launch.

“I think that if all these big-names jump on board with the market then it can become something. Defying the facts that many individuals think about cryptocurrency; This can only happen if banks allow this type of currency to be transferable,” Mark Sowinski, junior accounting major, said.  

Since cryptocurrency is an evolving market many individuals are skeptical about how protected the security really will be. 

“Since it is created by Facebook, and a lot of Facebook profiles have been hacked, then I feel there will have to be heavy coding for someone not to be able to hack into their Libra. I feel like it would instantly connect,” Amanda Cipollo, sophomore finance major, said.

Grigoryan explained how Facebook will embed Libra in all its platforms such as Instagram, Facebook, Messenger and WhatsUp app. This will allow users easy access to make a purchase and to sell a product directly on the app they are using. 

Libra also will remain the same value of a real currency compared to other cryptocurrencies like Bitcoin and Litecoin that are limited and are mainly for stock investment. 

“This is becoming new in the technological age. China is already evolving cryptocurrency within their culture, they are at least 10 years ahead of us. To us, it is a scary change but to others, it is a part of their everyday life and I think we should embrace it and give change a chance,” Ashlee Hofner, sophomore criminology major, said.

“More than 2,200 different cryptocurrencies are traded publicly,” according to coinmarketcap. Photo by flickr.

 

 

 

 

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Victoria Boland

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