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Hai everyone, how’s it all going?
Some interesting developments happened last week in the world of Cryptos which you may or may not have noticed.
Facebook came out and released a white paper (an info pack) about a new Cryptocurrency it’s originating called Libra and Calibra, the Blockchain platform supporting the back-office function.
It’s just another example of how the Blockchain is coming to the mainstream.

Wait… Cryp what? Block…chain?
Blockchain is the system in which a record of each financial transaction made in Libra (or any other cryptocurrency such as Bitcoin) is maintained across computers that are linked in a peer to peer network, i.e. blocks on an ever-lasting chain.
Each computer or “block” verifies the transactions of the “blocks” before it and so on.
For those of you who aren’t familiar with Cryptocurrency, have a read of some of my earlier posts (here, here and here).
Cryptocurrency’s intention is to make it as easy to send money or transact international business, as it is to send a photo.
But aren’t there other Cryptocurrencies out there?
True, true, but the difference is that Libra/Calibra will be backed by stable government backed money e.g. USD or JPY, and will be run, not by Facebook, but by a non-profit association supported by other existing payment platforms such as Visa, PayPal, eBay and Uber.
Once the coin is operational (estimated next year), Facebook’s users will be able to use this coin to pay for anything from a cup of coffee to sending monies internationally.
The implications for this are huge.
Why?
Because of the potential market up for grabs.
Facebook has 2.3 BILLION active users, with it’s subsidiaries Whatsapp – 1.5 BILLION and Instagram, 1 BILLION.
This makes Facebook having the highest level of personal touch points with individuals globally.

Oh OK.
Now imagine the colossal power and influence of one company with this number of individual users is able to develop a global currency and payments system that is transportable, secure, and most importantly, stable.
It would be the most disruptive and financially powerful business on the planet.
The vision of this new dawn in commerce, is not necessarily focused on success and growth in the US domestic market, with its mature economy, stable currency and government as well as trusted financial institutions.
No, the power of Libra is that if you are a Facebook user in Venezuela, or Syria, or the Republic of Congo – you may well trust Facebook a lot more that your local bank and transact as thus.
The ultimate goal for Libra is that it becomes the default currency in global trade, where now we have our local currency measured against the US dollar e.g. USD/EURO or USD/AUD, we might have it measured against Libra… Lib/EURO or Lib/AUD.
Hmmm, sounds fishy.
Well, for this technology to develop further, we are all going to have to trust Facebook as it will be securing Libra tokens onto a digital wallet (Calibra).
This would naturally bring up security and privacy issues – both of which Facebook has run afoul of in the past.

Also, there’s no free lunches in this world – so of course, Facebook will be paid, in the form of commission earned on all transactions it processes.
And later on – there’s nothing to stop Facebook from expanding Calibra into other financial services such as lending or investing, further diversifying it’s revenue stream.
So what next?
It’s very much a watch this space kinda scenario.
After all, the jury is still out as to which Cryptocurrency will emerge triumphant (or if at all).
The US government has also issued a statement asking Facebook to pause this project.
Although I tell you – with such a well-known name such as Facebook jumping into this space, it does bring an element of credibility to Cryptocurrencies.
Which is part of why Bitcoin and other Crypto’s have seen their values surge this week.
And y’know what – I wouldn’t be surprised to see a few other well-known brands having a sniff in Cryptos in the near future.
What do you think? Did you enjoy this post? Please help me out if you enjoyed this and put your email in and click on the little “subscribe” button at the top right. This way, you’ll never miss my words of awesomeness! So do the right thing, be a subscriber and get it straight to your inbox fresh out of the oven!
P.S. Incidentally I “invested” in a Cryptocurrency during the last boom of Dec ’17 which also claims to be the next “unique payments platform”…it went from a peak of $30/coin to sitting at just under 40c… OUCH!
46 Comments
Hang Around The World
The cryptocurrency is a topic so current, especially after Facebook introduced its own. I’m not so into it, maybe I should learn more about it… It is good article! – Paolo
The Frugal Samurai
No problem Paolo, thanks for reading!
Neil Alvin Nicerio
First time to hear about this crypto currency. I’m into bit coin. I would try to invest in it as well.
The Frugal Samurai
Yeah! Why not get into it… could be the start of something beautiful.
Tara Pittman (@momknowsbest15)
I am not sure about these new types of money. What we have works so why change it.
The Frugal Samurai
Yeah… kinda my thoughts to be honest – it seems like it’s a solution but for what problem?
Adaleta Avdić
I don’t know much about cryptos so this was very interesting to read.
The Frugal Samurai
No problem, thanks for reading!
Cristina Petrini
I have to be honest about alternative currencies I understand very little, the world of crypto currencies is a mystery to me!
The Frugal Samurai
Yeah me too, but seems like another potential revenue stream!
Amber
I haven’t heard of this before. I don’t do online currency at the moment–I have heard of bitcoin, but haven’t looked into this yet.
The Frugal Samurai
Oh it’s a part of the “altcoins”, which are the minor cryptocurrencies away from the Bitcoin and Ethereum’s of the world…
everdaylivinghacks
interesting
The Frugal Samurai
Thanks!
thecoffeemom0617
I saw this the other day but never really read much about it. I find it interesting that Facebook is getting into Cryptocurrency and really need to dig a little deeper into it.
The Frugal Samurai
Yeah they are, and don’t be surprised if a few of the other major players get involved as well! Thanks for reading.
toastycritic
I think I would be too nervous about any of these types of currencies until one of them came on top. I would be too nervous that any little fluctuation could lose all my money.
The Frugal Samurai
Nice nice, I agree with you – it’s a very much wait and see in this space right now. Prudent as well, because the risks are HUGE.
ansh997x
This is very interesting and sounds like they have introduced it to compete against Google Pay. If done right, it will be a new era of digital currency.
The Frugal Samurai
Hmmm great insight actually, never thought about the Google Pay aspect of things… great pick-up! And thanks for reading 🙂
successunscrambled
I have been hearing about crypto currency for a while now and I am waiting for things to settle down before making any investments in this platform. Like you said it is a matter of waiting to see how things turn out.
The Frugal Samurai
Yeah, things have bounced back a little bit though? Interesting to see when and if it does take off!
Krysten (@WeirdGirlBlog)
Cryptocurrency seems so weird to me. Thanks for all the great info, it’s very helpful.
The Frugal Samurai
Haha yeah, there’s not much rhyme and reason to it! Thanks for reading.
leah
this topic is something new to me. maybe I am out of the loop but I had no idea!
The Frugal Samurai
Glad to be of service!
kidneyfornikki
I keep hearing about cryptocurrencies but I haven’t really spent any time learning more. It seems like I will have to change that. Good article!
The Frugal Samurai
Thanks! And yes, there are going to be more and more mainstream methinks… next decade watch and see!
Alexandra Cook
Wow, I actually had no idea this was released. Pretty glad you explained it since I would have had no clue what it was.
The Frugal Samurai
No problem, and thank you for reading!
The Fruitcake Conglomerate
Interesting read! I know very little about cryptocurrency and as I haven’t heard much about it lately, I figured it fell off. Good to know it is still around. Thanks for the breakdown of info.
The Frugal Samurai
No problem, it’s very much in its infancy but more I see, the more parallels to dotcoms…hmmm time will tell I spose! Thanks for reading.
fashionmommywm
I keep hearing about crypto coinage and bitcoins and I have absolutely no idea what it is all about to be honest, so this is such an interesting read,
The Frugal Samurai
Thanks for reading – hopefully this gives you a bit more colour to it!
Itzel
I love your little sub headers for each section. I love when a bit of comedy is put into these more serious, or dry, topics. Makes you feel like it’s relatable and not like you’re being talked down to.
The Frugal Samurai
Very kind of you to say so, and glad you enjoy it – you’re right, reading should be fun!
vicky hallnewman
Cryptocurrencies seem to be everywhere at the moment and I have no idea about them. Thanks for making it all a bit clearer
The Frugal Samurai
That’s ok, thanks for reading!
Shalini R
Wow, I had never heard of this before. Interesting read and I sure learnt something new.
The Frugal Samurai
Thanks for reading and hope you learn a few more, stick around!!!
Hannah Marie
Sounds something quite new to my ears actually. I think this type of new thing is maybe worth checking and studying first. I know some friends are into this already.
The Frugal Samurai
I reckon aye! I think it’s very important, thanks for reading!
Enriqueta Lemoine
Not a big fan of crypto currency, seems like a bit of a gamble. Thanks for informing me though!
The Frugal Samurai
That’s OK and yeah… I kinda agree with you to be honest!
Georgia Boanoro
Cryptocurrencies are definitely alien to me, thanks for explaining things here in your article, it makes this topic a little clearer for me.
The Frugal Samurai
Yeah they’re still a bit alien to me to be honest! Thanks for reading.