Libra is a blockchain tech-based digital currency, backed by the US social media giant, Facebook. The company has already revealed its plan for Libra cryptocurrency in June and it is set to launch soon in 2020.
Reports have been suggesting that this new cryptocurrency might make its first appearance in the market by partnering with the pioneer digital payments firm. This has made other companies, especially PayPal, cautious about the future of Libra.
Although, the company is said to be backed by the basket of currency assets and US Treasury securities in an attempt to avoid volatility caused by the other virtual currencies in the market. Still, things not seem to be perfectly fine for the Libra, as central banks, governments, and regulators all are coming together and asking Facebook what are their plans on making it regulated.
Gabrielle Rabinovitch, PayPal investor relations vice president showing his concern said, “It’s a non-binding commitment,” referring to the plans of Facebook on how they will oversee the blockchain coins.
He continued, “And obviously, I think there’s a lot of work to happen before we get to that point where it becomes something more than just a very exciting idea.”
With Libra, Facebook is trying to develop a new global cryptocurrency. That will be stored in our smartphones and most importantly they are planning to make it a stable virtual cryptocurrency. This will help many people who are not using banks to become part of the financial system.
If one can point, they’ll see that Libra’s plans are quite similar to PayPal’s long term plans. There are hundreds of billion funds get transferred by the people to their families in the other country through digital payment. PayPal is the king when it comes to this digital fund transfer. However, the coinciding plans of Libra cryptocurrency have made PayPal cautious of its competition.