It is no secret that Facebook is one of the biggest and most influential companies in the world. The Mark Zuckerberg founded organization had found itself to be at the center of controversies in recent years, including data breaches, privacy infringements, and even the allegation of influencing the Presidential Elections in the USA.
However, the financial strength of Facebook, along with its powerful lobbying base means that governments or policymakers cannot touch it or its Founder at any cost. Facebook acquisitions of WhatsApp and Instagram has made it by far one of the most powerful companies in the world.
With nearly 3 billion subscribers worldwide, Facebook and Mark Zuckerberg have the power to control, reach out to and influence half the world’s global population. It was only logical that the next step for Facebook was launching a new financial system for the world- Libra.
What is Facebook’s new Cryptocurrency Libra?
According to Facebook, Libra is a digital reinvention of currency. It seeks to create a new, inclusive, and fair economic and financial system, which will take away currency manipulations, intermediaries, and problems associated with the current financial setup.
With the libra method, Mark Zuckerberg aims to bring nearly a new billion people of the Earth’s population into the formal banking ecosystem. This has the potential of improving global finance, driving unprecedented levels of growth and eradicate poverty and destitution.
Libra is a Digital Crypto, which will be backed by real tangible assets, which will help control its value and appreciation. It will not be created out of thin air. It will also be semi-decentralized as the Libra Association (a group of 100 tech members) will oversee all the transactions and the processes within Libra.
How much of Libra will be controlled by Facebook and Zuckerberg?
When Facebook first announced Libra, everyone thought that it will be strongly controlled and dominated in a monopolistic fashion by Facebook and Zuckerberg. However, contrary to popular perception, Libra’s White Paper proved everyone wrong.
The control of Facebook over any of the processes in Libra is only as much as the other 100 members. Facebook and Zuckerberg only get one vote and an equal share in the decision-making process. This is something, which was never expected from Facebook.
Many were also skeptical that Facebook would be sharing all the data from Libra to its other platforms and from its other platforms to Libra. However, Facebook has categorically stated that there will be no data sharing between Libra and any of the other companies.
In other words, with Libra Facebook attempts to create an image rebuilding exercise. It is intentionally avoiding all problem areas, which have made it come under criticism from policymakers, governments and global authorities in different parts of the world.
Is Facebook’s new Crypto, Libra going to change the world?
If there is anyone who has infinite resources and tech excellence at their fingertips, it is Facebook and Zuckerberg. Make no mistake; Facebook is a force to be reckoned with. Libra in many ways has been a wakeup call for national governments all over the world.
Many speculate that China’s new Digital Yuan has been modeled on Facebook’s Libra. The White Paper of Libra has been used by the Chinese to set the theoretical foundations of their new CBDC.
Libra’s intention is clear and direct- it wants to use technology to bring finance to the most remote corners of the world. It wants empowerment, which comes from money to be felt by the most underprivileged sections of the world. Zuckerberg and Facebook have taken the world’s next big problem head-on- finance.
Whether Libra is really going to change the world, only time will tell. However, we can rest assured that Libra will see the light of day in the coming few years.