The Facebook Plan of action for “Libra”
The world's first cryptocurrency had no control over the system by the inventor. And Libra deliberately tries to liken it.
"Think Facebook is like Satoshi Nakamoto (the inventor of Bitcoin), and Libra is like Bitcoin," said Union Square, a partner in the Libra Association. Fred Wilson, who heads the Ventures, says.
Of course, if this plan goes well, Facebook will have a lot to gain. By letting go of control rather than having the invention at hand, Libra becomes more valuable to Facebook. Cryptocurrencies are more widely distributed and more trusted. And given Zuckerberg's focus on exchanging messages, the idea of a borderless payment system fits nicely. Facebook has already developed a digital wallet for Libra that will be integrated into Messenger and WhatsApp, even though Libra's rulebook hasn't been finalized yet. To know more about crypto trading, you can visit Immediate Profit.
Also, much of the regulatory and safety concerns will be left to the new governing body. However, Libra is nothing more than a Facebook vision. The biggest obstacle that Libra will face may be to dispel the bad publicity of the creator. Marcus understands that. And he thinks it's important not to make Libra and Facebook synonymous with overcoming this obstacle. "Some of the articles described the currency as Zuck-bucks'or'Face-coin'. If that were the case, this plan wouldn't work." Twenty-eight partner organizations and their expectations.
Facebook has been preparing for more than a year, but now it seems that it is struggling to fill the 100 partner slots. Currently, 28 groups have gathered as partners. It includes payment networks such as VISA and Mastercard, fintech companies such as PayPal, Coinbase, and Stripe. It also includes venture capital such as Thrive and Andreessen Horowitz, non-governmental organizations such as Kiva and Communication companies like Vodafone, software service companies like eBay, Lyft, Uber, and Spotify.
The purpose of these companies is different. Software companies are looking for cheap global payment systems (especially micropayments). NGOs want a new way of financial services for people who don't have bank accounts (in the future, they will be other partners). Finally, blockchain companies hope that Libra will be a gateway to other cryptocurrencies.
The first group of partners joined in April, and the rest have just joined recently. Unfortunately, there are no banks among its partners yet, but Facebook welcomes them if they so desire. Now everyone is just a temporary partner. So joining the association now doesn't necessarily mean you're paying $ 10 million to run Libra's nodes.
Partners appear to be driven by curiosity, fear of being left behind, and the same dreams as Facebook. Companies are hoping that this Libra will be something that will bring benefits to those who are currently underserved and will revolutionize the digital currency. However, the degree of passion varies among partners. According to Joshua Gans of the University of Toronto's Creative Destruction Laboratory, one of the founding partners, the partner is only being called into something like the upcoming "Constitutional Convention." "There is a good chance that some will leave after that."
It's not surprising that Facebook's competitor giant tech companies haven't joined their partners. Instead, these companies are competing to develop their digital payment schemes.
Google, Apple and Amazon aren't partners with Libra so far, but Facebook says they're welcome. However, that's unlikely. Payment start-up Square and others seem to be good partners for Libra, but the company's CEO is Twitter CEO Jack Dorsey. The Dorsey has recently been focusing on Bitcoin. He invests Square's talent and resources to make Bitcoin a more accessible payment platform.
Dorsey talked about the strengths of Bitcoin in an interview dated June 14th on the business news site Quartz. He didn't seem to know the details of Facebook's plans, but "every private company realizes the value of having a currency that is accessible to everyone, does not belong to a nation, and is not bound or regulated by a single company. I hope they will do it."
The Libra Association itself was conceived by Facebook, albeit with the participation of other organizations. However, the company's engineers developed the technology, and they will continue to be involved in the development. Facebook even created a dedicated programming language called "Move" to develop apps for Libra.
Also, the Libra Association has not yet selected a board member or hired a managing director. Nearly three-quarters of the partners are undecided in the first place, and the first meeting has not been held. Nevertheless, it has already published white papers and accompanying materials. Who created these? Of course, it's Facebook. That white paper is a Facebook-made document that has been confirmed, edited, and signed by a current partner.
In theory, a meeting could be held after the association was completed as an organization, and the white paper could be rejected. It is because Facebook has the same number of votes as other members. But in reality, the partners are chosen by Facebook. They are companies and organizations that have shared values and aspirations with Facebook and have supported the creation of Libra. Therefore, even if Libra's charter is undecided, it should not deviate significantly from the current blueprint.