Recently, the giant social networking company, Facebook, introduced the latest digital currency (cryptocurrency) called “Libra”. Libra can be used for public transactions digitally, starting from sending money between users on the Facebook platform, to paying for items purchased on e-commerce platforms. Even though Facebook was launched, virtual money Libra was managed and regulated by an association which was under the “Libra Association”. A number of major players in the technology and financial realm joined in, such as Visa, PayPal, MasterCard, and so on. Libra is targeted to launch in early 2020. However, it is not yet known whether Libra will be present throughout the country evenly or not.
Because the essence of Libra is fully used online, Facebook relies on blockchain technology. This digital currency can be said to be similar to Bitcoin. So what’s the difference? Libra and Bitcoin can both be exchanged for cash. All record transactions are recorded in cyberspace safely thanks to blockchain technology. Even so, the target audience of each crypto currency is different. According to the General Partner of Blockchain Capital, Spencer Bogart, Libra tends to be used for daily transactions that are commercial in nature, such as sending money, buying a house, and other things online. Libra users are those who “live” on Facebook’s platforms, such as Instagram, WhatsApp, and Messenger.
Meanwhile, Bitcoin can also be used to transact or buy goods online. However, this crypto currency has not been declared as a commercial payment system and has not been regulated by a banking organization. Most people make Bitcoin an investment and store of value because of its fluctuating nature. Although currently the value continues to decline, there are still many who believe Bitcoin is “digital gold”. The next difference questions the stability of the exchange rate. Bitcoin is not regulated by banking or government organizations because its essence is independent and open. That is, the value of the Bitcoin exchange rate can be “played” wildly by people who are involved in this realm. This causes the value of Bitcoin to rise and fall very quickly.
The virtual money Libra exchange rate promised would be more stable. Apart from being supported by a qualified banking association, Libra also balances its exchange rate from the combined activities of leading currencies, including the US Dollar, Pound Sterling, Euro and Franc. “Libra is a stable crypto currency, supported by a number of currencies and the securities sector. Bitcoin is a crypto currency that is very volatile,” said Co-founder of Fundstrat Global Advisors, Tom Lee.