Libra is a blockchain-based digital currency proposed by American Social media company Facebook. It announced new members into their Libra Association recently and Heifer International was one among them.
Both had joined for an online chat to discuss the positive impacts of digital currencies on the people during a situation like COVID- 19.
Where-in Dante Disparte threw light on the benefits of the Libra payment system considering all people in all mediums of economic classes.
Heifer International joined Libra’s Association in April 2020 to mainly focus on the issues related to farmers and their financials.
The Libra Mobo-Payment System
A large sector of the population about 1.7 billion is underbanked but posses a smartphone with basic internet facility.
Libra Mobo-payment system is designed to meet these users who own a mobile device and wish to carry out transactions through mobile phones. It claims to provide a low-cost payment network.
In such a pandemic situation, where the farmers and other daily workers are facing serious problems, like the high cost of accounts and transaction fees.
This often ends up borrowing in high rates from local money lenders. Hence digital currencies like Libra can come for the rescue to access financials even during the pandemic phase.
Any person having a Libra enabled mobile wallet can receive their payments in the form of Libra coins and convert it into local traditional currency through exchange points in the city.
The roadmap for Launch
In the discussion, the Disparte made it clear that Libra is not going to move to the next level of implementation without any regulations.
The Libra is expected to go live in next year, 2021, with permissions from the concerned authorities. He also told that Libra is intended to support the traditional financial system of the country.
Libra – A Stable Coin
For the query raised whether Libra would be a Stable Coin, Dante Disparte said, “Indeed Libra is through and through an economic instrument designed to be a Stable coin”. It would reflect and inherits the properties of the single currency stable coins like U.S. Dollars.
Unlike cryptocurrencies which are highly volatile in nature, Libra is designed to support single currency stable coins which would provide stability and low volatility.
The Major Takeaway from the discussion
Libra is basically designed to provide people from all parts of the world access to safe and affordable financial services and also a better living.
It intends to provide hassle-free, low transaction fees, a quick and easy payment system for those who are not banked or don’t want to use a bank to transfer money.