(BlockBar) Libra’s mission is to build a set of simple, borderless currency and financial infrastructure for billions of people. At the same time, Libra targets that a large number of people in the world do not have access to the financial system and cannot enjoy the financial services provided by traditional Banks. In addition, people in urgent need of financial services often have insufficient or limited access to financial services due to the impact of cost, reliability and remittance flow,
According to the Libra white paper, blockchain and cryptocurrencies have many unique attributes that have the potential to help solve the usability and credibility problems of financial services. These attributes include distributed management to ensure that the network is not controlled by a single entity; Open access, allowing anyone with an Internet connection to participate; and secure crypto technology to protect the security of funds.
Facebook (and Libra support companies, including eBay, Visa, Uber and PayPal and other associations of the company) will cover all aspects of social life in ecosystem. In the system, the member company’s data can be connected to all the applications. In other word, a large number of products and services directly trade in Libra. To do that, it’s based entirely on Facebook’s rich database of who you are (real), what you buy, who you pay and how much money you have.
This is why Facebook’s Libra, does not compete with bitcoin.
Bitcoin is open, borderless, uncensored, publicly verifiable and immutable. By contrast, Facebook token is not same concept, because Facebook is a company that must exist within jurisdictions and follow every rule of traditional financial system, including the censorship of every participant. What’s more, unlike bitcoin’s blockchain, Facebook is not neutral about who use the system.
In addition, Libra serve as a global consortium of companies ACTS not a decentralize system. All verifiers are known and can therefore be “skewed” completely in response to the stresses in the global financial system.
So, there is one piece of the pie that Facebook is sharing: Banks. On the one hand, open source, borderless bitcoin is being adopted every day; on the other, Facebook plans to share Libra with 2.3 billion users. Banks are being squeezed between two powerful forces, with Facebook building a global payment system through existing users. At that level, Banks have no chance.
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