Hello! Friends,
Facebook's Libra currency has become the news around the globe and traders, crypto expert, developers began to analyze the benefit and risk factor attached to this new project. As an African, I began to study this project though I may not drop the full information now I have some piece of information to submit.
Pixabay: Facebook's Libra Currency
Facebook is known to be the largest social media platform globally and with Libra project is going to be a giant-sized project. The plan of this project is to bring in a digital currency that is backed by a reserve of real currencies and assets, that is hoped to grow and become globally accepted and adopted currencies. On the other hands, I will say, Facebook is trying to create a financial network globally which is based on digital currency.
This project has gained its ground already as many industries, company, project owners and entrepreneurs are already partnering alongside. Considering partners like Uber, Spotify, and Mastercard makes Facebook believe that more partners will join before the currency is finally launched to strengthen the credibility of both parties.
What Facebook Pictured!
It has been said that for a project owner to launch a project, there must be a set goal. For Facebook, the vision is to empower unbanked people globally by giving them access to the financial system worldwide. The estimate of Facebook Users is 1.7 Billion and the bulk of the users are from Africa and Asia.
Facebook Will Dispute Remittances
According to the world bank, remittance to sub-Saharan Africa has grown from $37 billion (2017) to nearly $40 billion as at now and the population of African in Europe and North America who regularly send money back home to his friends and relatives represent a huge source of this said remittance flows to the continent. Looking at the said value of the remittance, some countries economic pillars and national GDP is based on the remittance mentioned above. The cost of sending money from European countries to Africa is huge by extension and the remittance receivers even end up with less cash. This is one of the problems Libra will solve.
If carefully go through the Whitepaper you found a note where it reveals the sending of money from abroad has a fast and simple way to send money to the family back home.
Facebook Brought In Red-tape And Rivalries
There is a lot of sense in Libra that Facebook brought in if we consider the economics of targeting African. Facebook earns lower average revenue per user in developing markets but the prospect of an adopted digital currency will result to Facebook monetize the vast user bases it has garnered in African Markets. This credit will face some hurdles which will start with confronting existing social behavior. Facebook might scape through all this confrontation just because of its favor in African markets. There is widespread of its app usage (WhatsApp) and also the strong mobile money culture that Africans are known with. Some countries are started rejection Libra but when you consider regulations in Africa countries is not solid and take seriously as we have in European and Asia countries. This place Libra adoption high in Africa.
It is certain that the government may not accept this new technology and this is one of the major problems Facebook Libra currency will definitely face. yes, he may succeed but the looming threat of intermittent internet shutdowns from African governments especially those dictators Facebook might partake in this.
We hope for the success of this project across the globe but again, this project will make Facebook lost some users that are not in one way or the other belief in cryptocurrency base on their religion. The review continues as the announcement of the project is still very new.
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The largest airdrop in the history of airdrop will be recorded when facebook blockchain launched and it will traded in huge volumes over all the exchange 💱
this is cool, i cant wait to see this happening soon!