Let me talk about the reasons for the emergence of Libra coins. As we all know, at present, more than 200 countries and regions in the world use their own legal tender, which means that users need to exchange it when conducting global transactions. Online shopping mainly relies on payment institutions such as PayPal for currency exchange. Different merchants have different requirements for payment currency, and the exchange fee is also different.
In addition, if users need to rely on traditional financial institutions for cross-border remittance or collection, it will not only take a long time, but also the remittance rate is relatively high. It is these traditional problems that Facebook wants to solve. For example, users can buy Libra in local currency, and Libra may be linked to the exchange rate of the US dollar. After purchase, users can shop directly from globally supported merchants and settle accounts in virtual currency, thus avoiding the problem of high rates when making cross-border payments.
The original intention of creating Libra coins is to save money for users. This original intention will certainly be recognized by everyone, but what will happen to Libra coins in the future depends on how to solve the operational supervision problems in the later stage. Bitcoin once made people who hold Bitcoin panic because of security problems. The market of virtual currency is global, and it is also a great challenge for operating companies to do a good job of safety supervision on a global scale. I also hope that Libra can grow up and fight against Bitcoin. After all, the more competition, the more our interests will be maximized.