Meta: What is Libra?

With extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interest include Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency, Web 3.0, and metaverse ecosystems.

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Since May 2019, Facebook has been desperately trying to get its own cryptocurrency after it first floated ideas for a “Global Coin” or “Facebook Coin.” Then, in June of 2019, Facebook formally announced its “Libra” cryptocurrency project. But now after three years of regulatory and legislative scrutiny, multiple rebranding efforts, and an exodus of key crypto executives, it appears that Facebook (now Meta) faces major obstacles in introducing its cryptocurrency.

Libra: The Coin

In June 2019, Facebook released its first Whitepaper detailing its proposed world cryptocurrency called “Libra.” One of the main problems Libra seeks to address is how much it costs for individuals in developing countries to move money.

In these developing countries, individuals often pay exorbitant transfer charges. Libra was conceived to be a cryptocurrency that could be used anywhere in the world with a goal to foster more access to “better, cheaper, and open financial services.”

With Libra, consumers could send money to each other as well as pay for goods and services using the Facebook-backed digital currency instead of their local currency.

Facebook’s Libra

According to the original Whitepaper, Libra tokens were to be monitored and kept track of by the not-for-profit organization Libra Association. The association guarantees that Libra is financially backed by several global currencies and securities. This basket of securities was originally to include the following mix: 50% United States dollar, 18% Euro, 14% Japanese yen, 11% Pound sterling, and 7% Singapore dollar. It was believed that such a mix would bring price stability to Libra.

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