Question

What advantages would Libra have over existing money transfer services such as that provided by the company Western Union or banks?

What advantages would Libra have over Bitcoin? Use sub-headings for each point.

Answer 1

First of all, we'll get to know what Libra is all about and then we'll head into the advantages over the existing money transfer services and Bitcoin along with sub-headings.

Libra is found by Facebook and backed by the silicon valley which is yet to be implemented. This is a new found cryptocurrency and blockchain. It's initial release is about to take place in the year of 2020. This is facilitates a global payments system and gives access to the billions of people all over the world. Since the digital economy in global payments and transfers is booming rapidly, a simple internet connection with the user accessibility being enhanced, Libra is all set up to take over as a global digital currency.

Now let's head into the advantages over existing money transfer services and banks

Enhanced Accessibility & Mobility:

Libra is going to extend it's enhanced accessibility to the Users who do not have access to the banks and who wants to transfer money online overseas. This will take over the leadership of Libra on the banks and it's services in the places where banks aren't available.

Partnering with 100 companies:

Facebook is committed to partner with 100 companies and is going to receive a great support and development from the other large companies and payment platform companies like PayPal. This will take over the existing money transfer services when speaking with the terms of support.

Stability and Less Volatility:

Libra will be supported by government backed assets from the reserves to give it's stability in it's price and operations. This is also known as "stablecoin". Also designed to manage the volatility of the entire cryptocurrency market.

We'll discuss about the advantages over Bitcoin as below:

Governed and Controlled by Swiss Foundation:

Unlike Bitcoin which is not having any controlling body, Libra has been controlled by the Swiss Foundation. This association is will act as a monetary authority over Libra.

Uses Different Technology:

Bitcoin uses an anonymous public ledger such as blockchain, whereas Libra also makes use of blockchain and a network called "miners.Unlike Bitcoin, Libra's blockchain is authorized. Libra is designed to create a fine form of centralized financial structure since it is an authorized ledger and gains more trust by the issuer than the other issuer who manages their funds with in the Bitcoin.

Enhanced Reliability over the Financial Intermediaries:

Libra is reliable over the Trusted Entities unlike Bitcoin takes off the necessity for the other financial intermediaries. Thus Libra decreases the intermediary risks involved.