If you reached this guide is because you want to know how to buy Libra, Facebook’s cryptocurrency. At the moment, there is no way to buy Libra because the virtual currency was not released to the market as of today.
Facebook is working with regulators and other entities in order to release the Libra coin as soon as possible. In this guide, we will share some of the most important aspects of this digital asset. This includes how to buy libra crypto as soon as it is released, how it works and the reason why Facebook wants to create a cryptocurrency.
What is the Libra Cryptocurrency?
The Libra cryptocurrency is part of one of Facebook’s largest blockchain projects. The goal is to start offering users a digital asset to use on Facebook’s main platforms (i.e. Instagram, Facebook and WhatsApp).
This virtual currency could work on top of Facebook’s permissioned blockchain. The announcement was made in mid-2019 and the intention was to release it throughout 2020. Until now, there is no official Libra cryptocurrency. This is due to the fact that regulators decided to put a limit on Facebook’s plans to release its own token.
The Libra network is expected to support both global and cross-border exchanges by extending fiat currencies functionalities. Libra’s official white paper claims that they do not intend to compete with fiat currencies but complement them.
Initially, the project aimed at using a basket of currencies to support Libra’s value. However, this idea was rapidly discarded. If you want to know how to buy Libra, you also need to understand that Libra would not work alone.
In order to reduce regulatory issues, Facebook decided to run on top of the Libra network a set of stablecoins. The stablecoins the Libra network is expected to support include the following:
In the future, other currencies could be added to the network. This would help users (both individual clients and businesses) handle payments in just seconds and using blockchain technology.
It is also worth mentioning that there are several companies that are now part of the ex Libra Association, which is now called Diem Association. Some of these companies include Mastercard, MercadoPago, PayU, Visa, Coinbase, Xapo, Lyft, Spotify, Uber, Vodafone and many others.
This shows there is a large interest form companies that want to know how to buy Libra coin.
Companies Investing in Facebook Libra Cryptocurrency (Diem Association)
As we mentioned before, there are several firms that decided to be part of the Diem Association. The Diem Association is an independent membership organization that is headquartered in Geneva, Switzerland.
The main goal behind the Diem Association is to foster an open-source community that would support the development of a financial network. Additionally, they want to make payments scalable and secure through a wide range of initiatives.
The Diem Association is also going to be a key part of the governance of this network. The Diem project (Libra project) is governed by the Diem Association Council. Each of the members of the Diem Association has a representative person.
These members have a key role. They decide many different aspects of the network and also the reserve. Furthermore, they control the payment system and how it works. Additionally, the members should also support financial inclusion. They would definitely be promoting how to buy Libra.
Diem Association members work by running validating nodes. These nodes are the ones in charge of protecting the network. Moreover, they are processing and validating the transactions that users process.
Some of the Executive members of the Diem Association include its CEO Stuart Levey, Chief Technology Officer Dahlia Malkhi, Chief Legal Officer Steve Bunnell and the Chief of Staff Christy Clark.
This shows the Diem Association and the Libra project have been built on a business level. They want to offer services to single individuals and companies alike.
Is it Libra or Diem?
If you want to know how to buy Libra, you should also take into consideration that the digital currency has changed its name. At the end of 2020, due to legal and regulatory issues, the Libra Association decided to change its name to Diem Association.
The goal behind this name change was related to showing a more independent organization built around the companies that are part of the Diem Association.
In the official statement released by the Association, they explained about their mission:
“The Diem Association will continue to pursue a mission of building a safe, secure and compliant payment system that empowers people and businesses around the world.”
Stuart Levey, has also mentioned that the Diem project wants to provide a platform for fintech innovation and solutions to thrive. In this way, it would be possible to bridge the gap between businesses and consumers.
Users that want to know how to buy Libra cryptocurrency, have to know that there has been a name change. The digital currency is now called Diem rather than Libra. The digital asset has not yet been released and there could be many imitations right now in the market.
Why Did Facebook Announce the Creation of a Cryptocurrency?
Facebook announced the Libra project back in 2020. The goal was to offer a payment system that could be fully integrated with its platforms and that would help users and companies to receive, send and store money.
During the last decade, we have seen how virtual currencies were released to the market. The most popular one is Bitcoin (BTC), with a valuation of over $1 trillion dollars at the time of writing. Nevertheless, many other digital assets have also been released. Other coins include Ethereum (ETH), Litecoin (LTC) or Monero (XMR). Each of them has different characteristics and features.
Furthermore, some central banks announced the creation of Central Bank Digital Currencies (CBDCs) or that they were analysing the possibility of issuing CBDCs. Although no central bank has yet issued a CBDC, they could become a reality in the coming years.
Facebook didn’t want to be left behind in the cryptocurrency and blockchain fields. This is why they have decided to announce the creation of the Libra (Diem) cryptocurrency. Those investors that want to know how to buy Facebook libra cryptocurrency would have to wait as the virtual currency is still being developed.
How to Buy Libra?
If you want to know how to buy libra cryptocurrency, then you might be disappointed. At the moment there is no official platform to buy Diem (formerly known as Libra). Facebook has not yet released any digital asset to the market. This might take longer considering the regulatory concerns around this virtual currency.
However, speculators consider that some exchanges such as Binance, Coinbase and others could add support to Diem. This could be one of the easiest ways to answer how to buy Libra. In addition to it, and this is also speculation, could be to do so through Facebook, WhatsApp or Instagram.
Nevertheless, there is no clear information on how the coins will be sold to the market or through which methods. Nowadays, the easiest way to buy digital assets is by using a cryptocurrency exchange. These are platforms that allow traders to buy, sell and store virtual currencies, among other things.
Facebook’s Relation With Regulators
Those users that want to know how to buy Libra should know that Facebook has received criticism from regulators from different jurisdictions around the world. One of the main topics that raised concerns was related to the Libra cryptocurrency becoming a competitor of national fiat currencies.
This topic came after the announcement made by Facebook to use a basket of currencies to back the Libra digital asset. The original proposal was to use 50% U.S. dollar, 18% Euro, 14% Japanese yen, 11% Pound sterling and 7% Singapore dollar.
For example, Bruno Le Maire, the French Finance Minister, explained that Libra couldn’t be allowed to become a sovereign currency. Indeed, governments were worried the stability of the currency could damage fiat currencies.
In addition to it, regulators in the European Union became strongly supportive of creating a clear legal framework for the LIbra cryptocurrency to operate. This is one of the main things European investors should take into consideration about how to buy libra in the region. This could clearly have a strong impact on the availability of the digital asset.
In the United States, Donald Trump tweeted about the project promoted by Facebook. He stated that if Facebook wants to launch its own cryptocurrency project it has to be subject to banking regulations. This has clearly shown that traditional financial companies have also been lobbying against Facebook’s digital asset project.
One of the things that were discussed among the crypto community was related to the privacy implications of the Libra digital asset. Thus, for those investors that want to know how to buy Libra, privacy should be a key factor.
The crypto community is very conscious of privacy. Facebook has been in the spotlight of privacy activists due to the large information collected by the company through its different set of applications.
At the same time, Facebook has also been affected by data leaks that involved the personal information of over 50 million profiles. The Facebook-Cambridge Analytica data scandal has also been one of the major issues faced by Facebook in recent years.
It is worth taking into consideration that a digital asset such as Libra could have been used to gather even more information from users. For example, as the digital asset is expected to be integrated with WhatsApp, Facebook could get additional information about the expenditure habits of millions of users.
This data could later be sold to third parties or used in order to promote targetted marketing campaigns. Of course, this has been one of the main criticism faced by Facebook. For example, U.S. lawmakers consider that Facebook could fail to keep consumer data private through the Libra digital asset.
Differences Between Facebook’s Coin and Bitcoin
Despite being two digital assets, Bitcoin and Libra have many differences that are worth taking into consideration. Investors that want to know how to buy Libra, should also focus on the differences there are between “traditional” cryptocurrencies and Libra.
First of all, and the most important thing, Bitcoin is a decentralized digital asset that has no centralized authority. Despite the fact that the Libra digital asset is expected to work with a “decentralized” association, there is just a limited number of parties.
Indeed, it is not possible for individuals from all over the world to start running their Libra nodes and decentralized the network even further. Bitcoin, instead, works through a network of nodes that keep the network decentralized. Moreover, miners located in different regions process the transactions on the Bitcoin (BTC) network.
Bitcoin is a permissionless blockchain. There is no need for participants to have a special requirement to join the network. This does not happen with the Diem Association.
Bitcoin is not backed by any basket of currencies. Although Libra left this possibility behind, the goal was to “back” libra with a basket of fiat currencies from all over the world. Bitcoin has value because it offers a decentralized network to process money transfers all over the world.
Nowadays, Bitcoin is being traded in a wide range of financial platforms and several financial instruments have been created for investors to get access and exposure to it. Libra is expected to be promoted by Facebook and the Diem Association across the main applications of the Facebook conglomerate.
In terms of privacy, Bitcoin is also a leader when compared to Libra. If you care about privacy, this is one of the main things you should take into consideration about how to buy Libra. Bitcoin works with pseudonymous. You do not need to provide and share your name or private information if you want to receive or send Bitcoin.
Instead, as we mentioned before, Libra could have a clear link between the name of the person sending and receiving money and the funds they have. Later, this data could be used to promote marketing campaigns or sell it to third parties. Bitcoin, instead, offers a higher degree of privacy to users on its network.