The Block has reported that Facebook, the social media giant, is set to unveil the Libra Association which will be in charge of operating its native digital currency, Libra. According to the report by the Crypto news outlet made on the 14th of June, the Association will be unveiled on the 18th.
Facebook Hoping To Reach The Unbanked Through The Libra Project
As per the report, the social media giant alongside its partners, numbering in the dozens, will be unveiling the Association which is to have its headquarters in Geneva. It will be tasked with overseeing Facebook’s Libra Crypto project. On the same day as the launch, the company is also going to be launching the project’s Blockchain testnet.
The Crypto news outlet purports to have viewed an unspecified blog post on the company’s page which states that the Libra digital currency will be hosted on the Libra Blockchain. The project will be supported by the Libra Reserve which has been reported to be a store of real assets which will purportedly make the digital assets stable, interchangeable with other digital assets, gain global acceptance as well as have low inflation.
The Crypto news outlet also reports that the network’s underlying software will be open source, supported by the Apache 2.0 license. Facebook is hoping that the project will help the unbanked in the world gain access to the financial system.
Are Crypto Payment Platforms Becoming Banks?
The report concludes by stating that the social media giant will be focusing on compliance of the set regulations. It quotes the blog post as stating that the only means by which the system will be underpinned by a trustworthy, secure and sustainable framework is through innovation and collaboration with the financial sector. This collaboration will also be extended to include regulators and experts in different industries across the globe.
TechCrunch, an IT and Fintech magazine, had previously reported that various sources were expecting the launch of the stablecoin to be on the 18th of June. According to its 6th of June report, the project was to be officially launched this month, the magazine cited sources familiar with the plans. Criticism of this project, alongside similar ones, has however remained with the most recent coming from Weiss Ratings, a ratings agency in the US. This firm has claimed that the main goal of such projects is not in boosting the adoption of digital currencies but in disrupting business for banks.
Juan Villaverde, a developer has stated that taking a long term view, it is evident that digital currencies are in a long-term bull market mainly due to their powerful potential to upset the current financial system. In his post, he stated that many analysts are of the opinion that it’s payment apps such as Alipay and Google Pay that are challenging the financial system, in a way replacing banks. Villaverde noted that he believes that these platforms are not only replacing banks, they are becoming banks.
More Than A Dozen Firms Back Libra Crypto Project
Facebook’s Crypto project is reportedly being backed by major players within the payments space such as Visa, Mastercard and PayPal.