Facebook is reportedly rethinking its plans about launching its own digital currency after facing resistance from regulators. Facebook had earlier revealed plans to launch its own cryptocurrency called Libra. According to reports, it is now considering a digital version of already established currencies like the dollar and the Euro.
According to reports, Facebook has claimed that despite the backlash, the Libra Association that was founded with the aim to create the currency, will continue its work. The plan to recreate digital versions of already established currencies will also include the Libra Association.
According to reports, the social network's digital wallet will launch in Autumn, its release has been delayed by several months. Facebook also has reportedly said that it still remains fully committed to the Libra project. Facebook's partners in the Libra Association include Lyft, Spotify, and Shopify. As per reports, high-profile members like Visa dropped the idea after Facebook faced a backlash from authorities.
According to reports, Dante Disparte, head of Policy and Communications at the Libra Association has claimed that the goal of the association has not changed. Earlier France has claimed that cryptocurrencies like Libra pose a risk to the 'monetary sovereignty' of nations and other critics have claimed that cryptocurrencies could be used for nefarious purposes.
Cryptocurrency is a digital asset that is designed to work as a medium of exchange and uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Bitcoin which first released in n2009 is widely considered to be the first decentralized cryptocurrency. Since its initial release, over 6,000 other versions of cryptocurrency have been created.
According to reports, a cryptocurrency is a system that meets six conditions. The system does not require a central authority, meaning its state is maintained through distributed consensus. The system keeps an overview of cryptocurrency units and their ownership. The system decides is new cryptocurrency units can be created, if they can be created then their circumstances are defined by the system.
The ownerships of the cryptocurrency units can be proved cryptographically. In the case that two different instructions for changing the ownership of the same cryptographic units are simultaneously entered, the system performs at most one of them.