IAS Gyan

Daily News Analysis

Facebook cryptocurrency Libra to launch as early as January

28th November, 2020 Economy

Context: Facebook's Libra cryptocurrency is readying to launch as early as January.

  • The Geneva-based Libra Association that will issue and govern Libra plans to launch a single digital coin backed by the dollar.
  • Libra, unveiled by Facebook Inc last year, was relaunched in slimmed-down form after regulators and central banks across the world raised concerns it could upset financial stability and erode mainstream power over money.

What Is a Cryptocurrency?

  • A cryptocurrency is a new form of digital asset based on a network that is distributed across a large number of computers.
  • This decentralized structure allows them to exist outside the control of governments and central authorities.
  • Blockchains, which are organizational methods for ensuring the integrity of transactional data, is an essential component of many cryptocurrencies.
  • Many experts believe that blockchain and related technology will disrupt many industries, including finance and law.
  • Cryptocurrencies face criticism for a number of reasons, including their use for illegal activities, exchange rate volatility, and vulnerabilities of the infrastructure underlying them. However, they also have been praised for their portability, divisibility, inflation resistance, and transparency.