The co-creator of Facebook’s cryptocurrency has further clarified how Libra is expected to operate and provided some insight into what we can expect for the much-maligned One of the perceived drawbacks of cryptocurrency is the price volatility, value wildly spikes and falls, discouraging many people from... More. According to a recent speech by Christian Catalini, Facebook’s new stablecoin will generate profit through a new advertising revenue model that is kept entirely separate from Facebook.
Although Libra will be primarily generating profit through advertising, Catalini further clarified that this will not involve selling customer data. Instead, the company will use an entirely new business model that is completely separate from the targeted-advertising model that Facebook uses.
However, as a hybrid private-public blockchain, only certain members will be able to contribute to network security by running a node. Similarly, it is likely that only authorized third-party wallets, exchanges, and custodians will support Libra — essentially giving Calibra a great deal of control over how Calibra is distributed and used.
Understandably, a cryptocurrency backed by one of the world’s largest corporations and easily the world’s largest social network has serious potential to shake up the world economy. Because of this, regulators and governments in several countries have developed concerns that Libra may become a threat to national monetary policy.
Several countries in the European Union — including France, Italy, and Germany — have announced intentions to block Libra in Europe. China, Japan, and South Korea have expressed concerns about the cryptocurrency. This pressure from several countries recently led to several founding members of the Libra association bailing on the project.
Nonetheless, Catalini stated that these challenges were anticipated in advance and that once these regulatory hurdles are addressed, Libra can be expected to gain serious traction.
Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!
Do you want to BeInCrypto? Join our Telegram Trading Community for exclusive trading signals, educational content, discussions and project reviews! Images courtesy of Shutterstock, Trading View and Twitter.