Facebook has announced its much-anticipated cryptocurrency. Facebook has named the cryptocurrency as Libra. In addition to this, Facebook will not really own or control Libra. Instead, the Libra Association will control and develop Libra cryptocurrency. All members of the Libra Association will be responsible for developing and steering Libra Cryptocurrency in the right direction. Similar to all the association members, Facebook will also have just one vote in the Libra Association.
Currently, the association has 28 founding members, a number that according to the claims by Facebook, will reach 100 before the official launch. Some major names as part of the association include MasterCard, Visa, Uber, PayU, PayPal, coinbase, and Spotify. Other names include stripe, eBay, lyft, Vodafone, Facebook, and Calibra. Talking about Calibra, Facebook has also launched its Calibra digital wallet along with the Libra cryptocurrency.
Libra cryptocurrency: A stablecoin token
Cryptocurrency such as Bitcoin is known for its volatile nature and huge fluctuations in the value. This made people a bit apprehensive about cryptocurrencies. To combat that, Facebook has opted for stablecoin, a type of cryptocurrency that is stable in value. To ensure long term stability of Libra, each of the founding members have paid at least $10 million to become a validatory node operator. Libra blockchain will control and manage all the Libra Cryptocurrency transactions. Facebook noted that Libra cryptocurrency and Calibra wallet will launch in 2020 given developers across the world enough time to fix any issues in the Libra blockchain.
According to the announcement, Facebook has also launched a new subsidiary company called Calibra. This separate company will be in charge of handling your crypto transactions and not mix that with your Facebook data. This segregation will also ensure that Facebook does not use Libra payments and transactions to serve ads to users. Facebook will not tie your identity to all your publicly visible transactions in the Blockchain. This is probably the next big bet from Facebook. However, Facebook is aiming for the financial world instead of the way you connect with your friends, family, and colleagues.
Calibra Wallet on Facebook Messenger, WhatsApp, Android, iOS, and more
Calibra will launch its first product, the Calibra wallet in 2020. To ensure widespread adoption, the company will launch this new wallet on Facebook Messenger and WhatsApp along with dedicated apps on iOS, Android, and more. Facebook wants to ensure that users can easily send money to their friends, family, colleagues, and anyone across the world. The only requirement for this to work will be a smartphone. Facebook claims that the process will be as easy as sending a text message. Facebook revealed that it will have similar measures for security that traditional banks employ. Some of these measures include anti-fraud measures.