Komal Joshi · Dec 1, 2020 . 6min read
Facebook’s Libra claims its payment system FastPay will be seven times faster than Visa
Libra has introduced a paper that advocates Facebook’s digital payment system, FastPay will be seven times faster than the Visa system.
By Komal Joshi · Nov 12, 2020 . 6min read
Facebook’s Libra has proposed that its new digital payment system, FastPay, would be seven times faster than the Visa payment network. The payment system is developed on Amazon Web Services. For the uninformed, Libra is a digital currency based on a permissioned blockchain payment system, managed through the Libra Association. For carrying on the transactions between various parties, Facebook has introduced its Novi Wallet.
Recently, it is all in the trialling phases. However, Facebook plans to launch a new payment method, FastPay. Thus, easing the process of sending and receiving payments via a message to someone on their favourite messaging apps. Moreover, one has just to add money to their Novi wallet, and Novi will convert it into Libra Digital currency. Presently, one has to select whom to transfer this money to, check out the exchange rates for the amount one wants to send, and hit the transfer button.
FastPay to settle crypto payments
The paper further elucidates about FastPay. Its primary use case includes settling cryptocurrency payments. It will also assist retail payments in fiat currencies. The system could back up to 160,000 transactions per second for a capacity of 1.5 million transactions. The scientists and researchers from the Novi division are recently experimenting with it. To date, they have managed more than 80,000 intracontinental transactions per second in less than 100 milliseconds. Additionally, they have executed it with approximately twenty different payment authorities and facilities.
Moreover, FastPay will eradicate all sorts of credit risks linked to counterparty and net settlement issues. It will reduce the need for intermediate banks, and the concerned authorities will not require complicated financial contracts amongst them.
Facebook’s Libra faces regulatory objections.
Facebook’s Libra has been enduring criticism from regulators across the globe for going forward with the project. After it declared the crypto project, lawmakers and financial regulators have scrutinized and investigated the company for potentially threatening countries’ financial sovereignty. Financial leaders from the world’s seven largest economies (G7) are opposing the launch of Facebook’s Libra stablecoin. Moreover, it includes finance ministers and central bankers from the U.S., Canada, Japan, Germany, France, Italy, and Britain.
Follow Cryptodose for more updates.