Facebook introduces “Libra” cryptocurrency

Facebook has today announced it’s coming together with 27 organisations around the world to start the non-profit Libra Association and create a new currency called Libra.

In a blog post by Facebook founder, Mark Zuckerberg, he explained that Libra’s mission is to create a simple global financial infrastructure that empowers billions of people around the world. It’s powered by blockchain technology and the plan is to launch it in 2020.

“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.”

Mr. Zuckerberg added.

This he says is important for people who don’t have access to traditional banks or financial services but own a mobile phone.

The idea is to make it easy for everyone to send and receive money just like several apps are used 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.

Functions of the Calibra

Calibra will be regulated like other payment service providers. Any information one shares with Calibra will be kept separate from information shared on Facebook.

Subsequently, Calibra will initially let you send Libra to almost anyone with a smartphone at low to no cost. As time goes on, Facebook hope to 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 efforts put in place by Facebook, 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.

The company believes by the end of next year, they will have over 100 cofounding members of Libra Association.

The Facebook owner believes the decentralized nature of Libra which is blockchain technology makes the system fairer overall because of how it is run by many different organisations instead of one.

“This is an important part of our vision for a privacy-focused social platform — where you can interact in all the ways you’d want privately, from messaging to secure payments.”

Mark Zuckerberg, Facebook Founder

Mr. Zuckerberg cited an example that Calibra will have a dedicated team of experts in risk management focused on preventing people from using Calibra for fraudulent purposes.

In essence, Facebook will provide fraud protection so if you lose your Libra coins, you will be offered refunds. Users will also believe it’s important for people to have option to use many other third-party wallets on the Libra network.

The statement emphasized that Facebook has been working with policymakers and experts in areas like financial inclusion, economics, security, privacy and blockchain, and will continue listening to their feedback as they figure out the best way to move forward.

You can read more about the Libra Association here: https://libra.org

By Edward Kyei Frimpong-Mybeeponline.com