Set to launch in 2020, Libra is an upcoming digital cryptocurrency to be accessed by users through apps in order to make payments and transfer money to each other. Designed to streamline the process of transferring money over the company’s social media platforms, Libra has been backed by firms and organisations including Spotify, Uber, Mastercard and eBay.
It’s planned to develop into a ‘global coin’ amongst global currencies as a means of preventing the unpredictability of alternate cryptocurrencies. So, Libra could be the best currency to buy when it comes to the future of international trade. That’s why today, we’re offering a guide as to what exactly Libra is, the reasons why you should use it and how much it will cost, so that you’re equipped with all the necessary know-how when it comes to Facebook’s new Libra coin.
Similar to the encrypted technology used by Bitcoin and other cryptocurrencies, Facebook has created a new version of the blockchain which will be used to transfer money between users on social media platforms.
To exchange Libra, users will need to have a virtual wallet called ‘Calibra’ – an app which is integrated into existing apps in the same way PayPal and Apple Pay currently are. In a similar manner to the exchange of foreign currency, Facebook users will be able to swap their real money for digital coins. However, it’s pegged to real world currency, so doesn’t offer the same level of investment opportunity (or risk) as conventional cryptocurrencies such as Bitcoin or Ethereum. For these reasons, Libra has the potential for being one of the best currencies to trade internationally. Additionally, Libra will be powered by computers, so won’t be controlled by one central authority as such, offering users more privacy and security.
Why you should use Libra
As 1.7 billion adults globally are currently outside of the financial system with no access to a traditional bank, this excludes them from foreign trading and sending money. So Libra aims to tackle this issue, filling in the gaps which Paypal and Venmo can’t reach (as a bank account is required for use). This has the potential to create enormous economic opportunity universally and, as a result, more commerce internationally.
Unlike Bitcoin, which is notorious for being a highly volatile asset due to its value being determined by supply and investor demand, Libra is tied to traditional real world currencies such as the pound. Hence, the rumours regarding Libra being one of the best cryptocurrencies to trade for its market stability. Not only will Libra be widely accessible, but is also immune from the wild value fluctuations that have led to Bitcoin’s unstable reputation. So, Libra could be a great place to start for budding forex traders.
Why companies want you to use Libra
Companies will be able to gain the custom of people who currently can’t pay because they don’t have a credit card, consequently opening more doors for trading and business. Not only that, companies are in search of your loyalty – look out for big organisations and companies which will try encouraging you to keep your money in Libra through cross-brand promotions and discounts, inclusive of the circle of brands who have also integrated the app in their services.
Moreover, companies could save a lot of money by avoiding credit card transaction fees by adopting Libra. Libra will also encourage international trade and purchases, so could work wonders for companies who are aiming to make it big internationally, while saving them money and attracting customers they may not have previously been able to reach out to.
Whether you’re researching what the best currencies are to trade and buy or you’re on a mission to gain more contextual currency trading knowledge, we hope that you’re feeling equipped to delve into the world of cryptocurrency with both hands. For more useful tips and professional advice on how to best prepare yourself for your trading journey, sign up to one of our free seminars, where you can learn more about everything you need to know.