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On June 18th Facebook announced the first details around the launch of its cryptocurrency Libra which will be developed on its own blockchain, Libra Network. According to Facebook, Libra is a project that will enable access to financial instruments for 1.7 billion people in developing countries and will improve rather than destroy the traditional financial system.
However, the official announcement of the Libra launch was not met with the full support of the global financial community. Facebook’s ambitious plan of launching a new cryptocurrency attracted the attention of US and European lawmakers the very next day after the project announcement, and some politicians have already called for the suspension of the Facebook payment service.
The Matter of Availability
One of the critical advantages of Libra is its accessibility. While 1.7 billion people around the globe do not have access to banking systems due to various reasons i.e., lack of ID, or damaged credit history, to use Libra they only need to have a smartphone where they can do both – keep their crypto savings, send or receive them. Hence, they can be in total control of their funds with no need to report on their financial behavior to any third-party financial institutions.
The Matter of Time
The time people spend to implement cross-border transfers is another serious argument for moving to cryptocurrency. Cross-border bank transfers usually take from three to five days. This delay is due to several reasons, and none of them speaks in favor of using banks. Speaking of blockchain transfers, the average duration of the transfer takes from several minutes to several hours (depending on the amount of crypto you send).
The Matter of Usability
The question of usability is another big badge in Libra’s favor.