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Kevin Curran: Bringing banking to the masses. That's the goal of Facebook's new Libra,cryptocurrency. Pretty cool, right. But secretly, are you saying, I really don't get this? Or maybe you're even saying, is this really a cryptocurrency? Well, don't worry. We have all the answers for it and we're going to break it down for you right now.

Kevin Curran: Libra is a stable coin built by the social media giant and powered by a new Facebook created version of blockchain. What a stable coin means is that it's pegged to a basket of stable existing currencies such as the dollar and the euro. Libra is meant to be used globally and targets people in developing countries that lack banking infrastructure or are stung by unstable currencies and inflation. The ability to process transactions without the need for infrastructure or a viable national currency is a win win from this vantage point, especially in countries like India where Facebook and Whatsapp user basis far outweigh those holding stable bank accounts. Now let's talk about how it will work.

Kevin Curran: Users will have to first download the Collibra application, a Facebook subsidiary that will provide the virtual wallet for the Libra coin that can be transferred across Facebook's messenger, whatsapp, Instagram, and a standalone app within their ecosystem.

Kevin Curran: It's not clear which countries the coin will launch in first, but Facebook has already said that almost anybody in the world with a smartphone will be able to download the Collibra app. The coin itself will be governed by an independent foundation, The Libra Association, which incorporates 27 founding members, including major app economy leaders like Uber and Lyft, as well as leading payment processes like Paypal, Visa and Mastercard. Broad governance is expected to expand in nearly a hundred companies according to Mark Zuckerberg by the launch in 2020 diversifying leadership from maybe Facebook's more questionable business practices. So while Project Libras main aim overall appears to be noble, it's still leaving critics with many questions on safety and privacy with many regulators across the globe already eyeing ways to stop the initiative in its tracks. Also, current crypto enthusiasts are wondering whether this is really a cryptocurrency at all. So with these questions in mind, how Libra will actually disrupt the payment industry status or the cryptocurrency space remains to be seen. But what we can say for sure is that it's certainly making waves right now.

Facebook (FB - Get Report) is making a foray into blockchain-backed payments, with reams of data in a newly published white paper.

So now the key questions are: What is it and how does it work?

The coin is what is termed a "stablecoin," which means it is pegged to a basket of existing currencies such as the dollar and the euro, and allows users to buy and sell goods on the platform by use of a digital wallet that the system facilitates through its Calibra application.

"Being able to use mobile money can have an important positive impact on people's lives because you don't have to always carry cash, which can be insecure, or pay extra fees for transfers," CEO Mark Zuckerberg said. "We aspire to make it easy for everyone to send and receive money just like you use our apps to instantly share messages and photos."

WhatsApp and Messenger will be connected to offer seamless payments around the world at low or no cost in order to bring further accessibility to the effort, especially as WhatsApp remains overwhelmingly popular in underbanked regions like India.

The effort will be backed by a blockchain called the "Libra protocol" that allows "validators" across authorities with program resources "owned by different user accounts authenticated by public key cryptography and adhere to rules specified by the developers.

"All of this is built on blockchain technology," Zuckerberg explained. "It's decentralized -- meaning it's run by many different organizations instead of just one, making the system fairer overall."

For the time being, the validators will be 27 founding members that include major corporations across the tech industry including PayPal (PYPL - Get Report) , Uber (UBER) , and Lyft (LYFT) .

"Facebook teams played a key role in the creation of the Libra Association and the Libra Blockchain," a note explaining the governance structure adds. "While final decision-making authority rests with the association, Facebook is expected to maintain a leadership role through 2019."

As far as investment impact, some Wall Street analysts are forecasting the new currency to be the biggest impact on the company in years, akin to the "iPhone moment" that took Apple (AAPL - Get Report) to staple investment status over a decade ago.

"We think this is among the most important initiatives at the company and may be critical to commercializing the value of its messaging infrastructure," Loop Capital analyst Alan Gould said.

Still, with the lingering concerns surrounding Facebook's corporate governance and potential antitrust practices, there is certainly room for caution on the new initiative.

Recently, Donald Trump said Facebook's Libra will have "little standing or dependability," and suggested that the social media giant would have to seek a banking charter to proceed with the project.

Additional details on the investment outlook are available here.

For more on the potential pitfalls that could curtail the currency play, click here

Watch: Will Facebook's New Crypto Venture Kill Bitcoin or Fuel the Fire?