What is Libra Coin? How to Buy Libra?

It made my day when one of my colleagues asked me if I heard about Libra? “Libra? I am Sagittarius and have no idea about the astronomy” I replied to him and all the others had a hearty laugh in the office. I was super embarrassed then but manage to get away with another joke and survived that.
Later on, they explained the story and I found myself deeply committed to the news, researches and other explanations about the Libra. Now it is time to reveal what I know about Libra and help others who may be excited about it but do not know what to expect.

That you may be interested;

What is Bitcoin? Fast Guide for Beginners!

What is Altcoin? Fast Guide for Beginners!
What is Coinbase and How to Use Coinbase?

I would like to inform you again if there is still someone who has not heard it from the news. One of the most popular agenda items of recent years is the crypto coins. These new currencies, which entered our lives 10 years ago, have attracted a lot of attention from many. Even the heads of states and giant investment companies.  However, they were developed out of sight for a few years.

Cryptocurrencies, which is still a big question, even for those who stand at the heart of the world of technology and the Internet, have led to change everything in a market as important as the return of the world, such as banking and finance.

First of all, it is useful to know that cryptology is an encryption science. It describes the process of encrypting data according to a particular system, sending it to the recipient through a secure environment, and decoding this encryption system and the emergence of the data. 

The purpose of this science is to ensure that only the right people use these currencies. Cryptocurrency is a digital and virtual currency that uses cryptology for security purposes. Coins are cryptographically encrypted.



Libra also is a virtual cryptocurrency based on a blockchain basis just like previously announced bitcoinaltcoin, and the like. Unlike others, Libra will fully support the currencies and other assets used as collateral for each unit it creates with the Libra Reserve. Contrary to what is known, Libra does not belong entirely to Facebook. It is the project of the Libra Association in which Facebook is a part. This structure is a superstructure that is planned to serve as the monetary authority of Libra. According to the Libra Association, the aim of this project is to provide solutions to approximately 1.5 billion people who do not have a bank account that can use national currencies known as real money in the market.

Libra transactions, as well as Bitcoin and other cryptocurrencies, will be recorded on Blockchain. There are some similarities with Bitcoin's technology and Bitcoin, but there are also some differences. For example, the price of Libra will be less volatile than the Bitcoin price. Because Libra will be released as stablecoin fixed to a value.

Who are in the Libra?

Mark Zuckerberg, in some of his statements, says that sending money online should be as simple as sending photos. Libra is designed to make it easier and cheaper for people to send money online. Within the Libra framework, Facebook is only one of the members of the association that will serve as the de facto monetary authority of the currency. Facebook will have no more say about the decisions of the association than other members. 
   
MasterCardVisa, PayPal, Uber, eBay, Vodafone, Mercy Corps, and others are also included in this framework. (Some of the members like PayPal, Visa, Mastercard, Stripe, eBay, and Mercado Pago left the framework around October 2019.) The association hopes to reach 100 members, most of whom can invest $ 10 million to fully implement the project. Each member of the association, headquartered in Switzerland, has the same number of votes.

Libra, like other cryptocurrencies, is completely digital. Each transfer is saved in a software book as a blockchain to confirm. The Libra blockchain will be managed primarily by the founding members and will become an open system in the future. Unlike some other cryptocurrencies that are not supported by anything like other crypto money units and fluctuate wildly in response to speculation, it is said to be tied to a basket of assets that will increase the value of Libra. Although it is not yet clear which currencies and other assets the Libra will turn towards, it is expected to include bank deposits and government securities in currencies obtained from stable and reputable central banks.

The Value of Libra

Facebook and other partners support the Libra with traditional currencies and assure that the crypto can be withdrawn in cash at any time. It is not yet known, but possibly, the value of the Libra will be determined by the value of a basket, including the US dollar, Sterling, Euro, and Swiss Franc. “Facebook has the ability to rival the entire global banking system from day one, but, because of that fact, when that first day will be is far from certain,” CoinFLEX CEO Mark Lamb told BloombergAlthough, apart from other crypto coins, Libra will be a stablecoin which I mentioned early.


How do I get a Libra?

The Libra Association says that the new cryptocurrency will only be ready by the middle of 2020. So you will have to wait a while before you can buy a Libra. After Libra is released, users will be able to purchase crypto money through the Calibra wallet. Calibra is a virtual wallet made for this purpose where you can see the track and manage your assets. Besides that, the Calibra will not be the only option to get and use Libra.

Libra works with many partners, including other payment agencies. All of these partners will provide services to convert crypto money into traditional money. In addition, it is one of the statements that new partners will be added to these partners.

Libra’s launch date which is originally announced for early 2020 and now looking more like the end of the year according to the financial experts, if not much later – has been pushed back following regulatory backlash and partner exits, such as PayPal’s departure this October. Some nation’s lawmakers have even called for the project to be halted because of the “obvious reasons and drawbacks”. United States Treasury Secretary Steve Mnuchin raised concerns that the coin could be used for money laundering, while President Trump argued that Facebook should be required to obtain a banking charter to move forward with its plan.

Possible Future About Libra

Libra can have a strong positive impact, especially in developing countries. Especially in countries where the local currency is rapidly depreciating and experiencing hyperinflation due to the irresponsibility of the central banks. People may turn to the Libra against the weakness and inconsistency of local currencies. If the Libra top management is to pay interest to those holding this cryptocurrency, this could trigger calls for the abolition of subsidies for banks at the heart of the banking system in countries such as the United States. An increase in interest rates can be seen in the race.

 


In addition, Libra can provide ease of use in storage and transfer operations without paying high fees in developing countries, especially those with weak banking infrastructure. Therefore, in international payments, Libra may be a more cost-effective way than the methods currently available.

An independent association was established for Libra in Switzerland. This association, which will also function as a foundation, will protect Facebook from possible anti-trust cases and make it a major financial power over time. In this sense, the selection of Switzerland is not surprising. Libra will face many uncertainties in financial regulation in the coming period. Will the Libra be traded as security? What will it take to open an account? It's like how to pursue tax?

The Libra administration will be forced to transparency by governments due to financial announcement obligations. After Libra launches, other crypto coins will strengthen. Millions of people who are not yet aware of this market will learn how crypto money works in this process through Facebook and start to trust the system.


Conclusion

While there are some uncertainties that hurting the Libra hype-train like the leaving of PayPal, Visa, Mastercard, Stripe, eBay, and Mercado Pago, Facebook does not seem to forget about the idea. Although it is sometimes announced to be on the market around mid of 2020, major pressures from governments, finance, and banking actors are affecting the Libra’s future.

In any way, if you also share the idea of Libra’s status as stablecoin and the power of FacebookLibra could be an alternative payment method for you, too.