Facebook Launches Libra Cryptocurrency and Calibra Digital Wallet
A simple global currency and financial infrastructure that empowers billions of people.
Facebook is parenting with 27 organizations around the world to start the non-profit Libra Association and going to launch Libra Cryptocurrency and Calibra Digital Wallet, a new subsidiary that will build for Messenger, WhatsApp, and apps on iOS and Android. The Founder and CEO at Facebook, Mark Zuckerberg said that “our mission is to create a simple global financial infrastructure that empowers billions of people around the world”. Libra is powered by block-chain technology and will be launch in 2020.
After the launch of this new currency, it will create positive impact on people’s lives because many of them don’t want to carry cash, which can be insecure, or pay extra fees for transfers. It is also important for those people who don’t have access to banks or financial services. Right now, there are around a billion people who don’t have a bank account but do have a mobile phone.
Facebook and Libra are trying to make it easy for everyone to send and receive money just like you use mobile apps to instantly share messages and photos. To enable this, Facebook is also launching an independent subsidiary called ‘Calibra’ that will build services that let you send, spend and save Libra – starting with a digital wallet that will be available in WhatsApp and Messenger and as a standalone app next year.
What is Calibra Digital Wallet?
Calibra will be regulated like other payment service providers. Any information you share with Calibra will be kept separate from information you share on Facebook. From the beginning, Calibra will let you send Libra to almost anyone with a smartphone at low to no cost. Over time, facebook will offer more services for people and businesses – like paying bills with the push of a button, buying coffee with the scan of a code, or riding local public transit without needing to carry cash or a metro pass.
In addition to facebook efforts, many other companies will build their own services using Libra – from payment companies like Mastercard, PayPal, PayU, Stripe and Visa, to popular services like Booking, eBay, Farfetch, Lyft, Spotify and Uber, to non-profits doing important work around financial inclusion like Kiva, Mercy Corps and Women’s World Banking, to companies in the crypto space like Anchorage, Coinbase, Xapo, and Bison Trails. A number of leading Venture firms are also joining to help drive innovation on the Libra network.
It’s decentralized – meaning it’s run by many different organizations instead of just one, making the system fairer overall. It’s available to anyone with an internet connection and has low fees and costs. And it’s secured by cryptography which helps keep your money safe.
Is Using Libra Safe?
Privacy and safety will be built into every step. For example, Calibra will have a dedicated team of experts in risk management focused on preventing people from using Calibra for fraudulent purposes. The company will provide fraud protection so if you lose your Libra coins, you’ll get refunds.
There’s still a lot more to learn and do before Libra will be ready to officially launch. According to Facebook, “We know it’s a major undertaking and responsibility – and we’re committed to getting this right. We’ve been working with policymakers and experts in areas like financial inclusion, economics, security, privacy and blockchain. We’ll continue listening to their feedback as we figure out the best way to move forward.”