Facebook unveiled its first Cryptocurrency named as Libra which it was planning from the past couple of years. We also got reports earlier regarding Facebook’s cryptocurrency but there was no substantial evidence of it at that time. Now that the company has officially unveiled Libra, we get to know a lot more about it.
First of all, Facebook’s Libra is its biggest move yet from switching to financial services from a business which relies on advertising. Apart from that, it is also the first time that a move has been made to bring digital currency to regular users.
Talking about Libra, it is named after the seventh astrological sign in Zodiac which is also called Libra. Facebook’s Libra is a cryptocurrency which also has a secure blockchain-based payment system. This payment system, along with its cryptocurrency is backed by hard assets which have value in the real world.
This means that Facebook’s Libra is less volatile and will have much fewer fluctuations in value as compared to other cryptocurrencies like Bitcoin who we have seen major highs and lows in its value already. Facebook also told the world that it has set up a not-for-profit organization in Geneva, Switzerland called the Libra Association.
This association will look after a subsidiary from Libra called Calibra. Calibra will also offer the crypto wallet which is a digital app that lets you pay for items using your Libra Cryptocurrency and even send money online to others.
Apart from that, Facebook says that Calibra would be governed with the help of external partners and it will ensure “the separation between social and financial data”. This is also useful for Facebook which is a company facing lots of privacy issues and is low on trust from users.
Facebook also announced a series of corporate partners that are already backing the Libra cryptocurrency. Facebook says that these partners will help it create a “secure, scalable and reliable” cryptocurrency.
The list of corporate partners from Facebook includes the likes of Spotify, Uber, MasterCard and PayPal among many others. Facebook also reveals that The Libra Association will mint and distribute Libra currency through authorized sellers only. So you will have to download the Calibra digital wallet and purchases Libra from authorized sellers.
After that, you will be able to make purchases from Calibra online with its corporate partners. Let’s take an example of Spotify or Uber to understand this better. You will able to make payments on Uber or Spotify through Calibra using Libra. Spotify or Uber will then exchange Libra for dollars so you don’t have to. After that, the corporate partners will sell Libra to the Libra Association.
Facebook also says that it is planning to launch Libra Cryptocurrency by 2020. And it has revealed that Libra will be available not only as a stand-alone app but also on its Messenger and WhatsApp services. Facebook says that with the help of Libra, it wants to save $25 billion “lost by migrants every year through remittance fees,” Facebook says that one of Libra network’s early goal is to provide basic financial services to people all over the world.