By Tyler S. Farley | 26 June 2019
THE CULTURE CHRONICLES — Facebook’s announcement of their own cryptocurrency named Libra was not met with much surprise as rumors had been swirling for some time that Facebook would take this step.
But the announcement did beg many questions, such as what was Facebook really trying to accomplish with it’s own cryptocurrency.
In reality, their coin will be similar to a stable coin in that it will be backed by real assets and pegged to a certain value. So this wont’ be something people will use as investment, instead it will be a cash/money alternative that locks the user inside of the Libra/Facebook ecosystem.
So why does Facebook need a car wash token like system to get people to trade their real money in for Libra coins? The reason is simple, they are going after their millions of low income users who are unbanked and cannot obtain traditional banking products like debit cards or credit cards, and in many cases can no longer use Paypal or other money sending services due to past misdeeds on those platforms. […]