- Libra Cryptocurrency: Facebook Unveils Global Money
Facebook Inc has finally unveiled its much-awaited cryptocurrency on Tuesday.
The cryptocurrency called Libra will be managed by Libra Association, an independent group formed to ensure its transparency and evolve the new ecosystem.
According to Libra Association, global internet connectivity has empowered billions of people globally and with just $40 smartphone, people can access numerous information, high-fidelity communications, and a wide range of lower-cost convenient services.
While this connectivity has helped more people access the global financial system, 1.7 billion adults remained outside the financial system with no access to traditional bank. That is 31 percent of global population.
Again, for those who have access to financial services, transfers are slow and take an average of 3 to 5 working days for a single international transfer to be completed.
On cost, the company said it cost 7 percent on average to send money internationally and for unbanked, they pay $4 more to access cash. Meaning, more transactions are cash-based. To be precise, about 85 percent.
This explains why U.S. retail businesses lose an estimated $40 billion annually to cash theft.
According to the company, by addressing all the aforementioned, about $3.7 trillion will be added to developing economies and 95 million new jobs will be created. People’s earnings potential will increase by 20 percent while extreme poverty will drop by at least 22 percent.
Facebook and Libra Association plans to address these issues with Libra, a simple global currency and financial infrastructure that can empower billions of people.
The association on its new website said: “Moving money around the world should be as easy and cheap as sending a text message. No matter where you live, what you do, or how much you earn.”
What is Libra?
Libra, has explained by Investors King, is a stablecoin version of cryptocurrency built on blockchain technology.
Libra will be tied to a basket of fiat currency to regulate its movement and help eliminate challenges currently hurting Bitcoin and the rest of unregulated cryptocurrencies.
The team hope to push cryptocurrency to mainstream and allow comprehensive regulatory control while maintaining its unique decentralise nature.
Calibra, Libra Digital Wallet
Facebook established a new subsidiary, Calibra, to provide financial services that will allow people access and participate in the Libra network.
Like other cryptocurrencies, Libra needs a digital wallet, therefore the first product Calibra will introduce is a digital wallet for Libra. The digital wallet will be available in Messenger, WhatsApp and as a standalone app.
The company expects to launch the app in the first half of 2020, the same period Libra will be officially launched.
Libra Association said the service will eliminate financial bottleneck and reduce cost of global transfer, currently put at an average of $25 billion yearly.
All these, the association said it hopes to address with Calibra, a digital wallet that people can use to save, send and spend.
Members of the Libra association will be responsible for managing Libra Reserve and development of Libra Blockchain.
The Founding Members of Libra Association that will work together to finalise the association’s charter and become “Founding Members” upon its completion are, by industry:
• Payments: Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa
• Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft,
Mercado Pago, Spotify AB, Uber Technologies, Inc.
• Telecommunications: Iliad, Vodafone Group
• Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited
• Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital,
Union Square Ventures
• Nonprofit and multilateral organizations, and academic institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking
Bitcoin, Other Cryptocurrencies Decline as Elon Musk Pulls the Plug
Elon Musk’s owned Tesla made a sudden U-turn on Wednesday to stop accepting Bitcoin for payment of its vehicles, citing rising use of fossil fuels in Bitcoin mining and transactions.
A situation that could have a negative effect on the environment, stated the Chief Executive Officer, Tesla Inc., Elon Musk.
Elon Musk had earlier asked if his over 54 million followers, which comprises of a huge number of cryptocurrency lovers, want Tesla to accept Dogecoin, a meme coin that has risen to global prominence on Musk’s support.
Do you want Tesla to accept Doge?
— Elon Musk (@elonmusk) May 11, 2021
Over 78 percent responded positively to the poll on May 11 before Musk announced on Wednesday the decision of Tesla Inc to stop accepting Bitcoin.
Millions of Dogecoin investors and traders are now predicting that Elon Musk is likely to announce Dogecoin as a replacement for Bitcoin going by his latest tweet below.
Bitcoin plunged by over 17 percent from $54,800 to as low as $46,294 per coin before rebounding to $51.119.16 as at the time of writing.
Ethereum, XRP and Dogecoin also pared losses to 7.26 percent, 7.82 percent and 10.90 percent, respectively.
Musk, in a tweet, said Tesla has suspended vehicle purchases using Bitcoin.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Tesla Stops Accepting Bitcoin Over Rising Use of Fossil Fuels in Bitcoin Mining, Transactions
Tesla Inc., an American electric vehicle and clean energy company, on Wednesday announced it has stopped accepting Bitcoin as payment for its vehicle.
The company’s Chief Executive Officer, Elon Musk, disclosed this in a tweet.
Musk said “Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.
“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment.”
The billionaire further stated that Tesla will not be selling its holding of Bitcoin until mining transitions to more sustainable energy.
He said “Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”
Bitcoin plunged by 17 percent from $54,800 per coin to as low as $46.294 per coin before moderating to $50.656 per coin while Ethereum, XRP, and Dogecoin declined by 9.09 percent, 10.73 percent and 10.28 percent, respectively.
In March 2021, Elon Musk announced that customers in the United States can now purchase Tesla vehicles with Bitcoin.
This was despite Bill Gates, Janet Yellen and others complained about Bitcoin energy consumption and its impact on the globe going forward.
While Musk seems to have downplayed their concerns in March, the Billionaire is now pushing for exactly the same thing after accumulating enough Bitcoin. A move now criticized by millions of cryptocurrency lovers globally.
Nic Carter, founding partner at Castle Island Ventures, and a leading voice among defenders of Bitcoin’s energy use, said Elon Musk should have done his due diligence before accepting Bitcoin.
“Surely he would have done his diligence prior to accepting Bitcoin?’ Carter said. “Very odd and confusing to see this quick reversal.”
Others started pushing Dogecoin as a replacement for Bitcoin while some suggested Tether on the Tron network has the lowest energy consumption presently and it is a stable coin.
Ethereum Market Cap Surpasses JPMorgan As It Hits A New ATH
Ethereum, the world’s second-most valuable digital currency, spiked nearly 10 percent in the last 24 hours and reached an all-time high of approximately $4,370.
According to the latest data published by Coinmarketcap, Ethereum now has a market cap of more than $500 billion. ETH becomes only the second cryptocurrency in the world to reach a market value of $495 billion.
Ethereum is now more valuable than the world’s leading investment bank JPMorgan. The total market cap of JPMorgan Chase currently stands at around $480 billion. ETH has been on the rise since the start of 2021. The cryptocurrency crossed the market cap of the Bank of America and PayPal earlier this year.
ETH whale activity has increased during the last few weeks amid a surge in its price. Yesterday, Finance Magnates reported about the movement of 46,793 Ethereum from a digital wallet to cryptocurrency exchange Binance.
“Ethereum top stakeholders have been historically active over the past week, with one 4-hour window on 5 May seeing over 6,300 $100k+ ETH transactions. This explosion in activity beginning on 3 May had much to do with the inevitable rise to $4,200,” on-chain analytics firm Santiment mentioned on Twitter.
The latest price surge in ETH has made Vitalik Buterin, Co-Founder of Ethereum, one of the youngest crypto billionaires after his public Ethereum address crossed 333,520 ETH, which is approximately $1.4 billion in value.
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