Economy

Facebook Libra cryptocurrency revealed with Calibra digital wallet to manage it

Facebook Libra cryptocurrency revealed with Calibra digital wallet to manage it

It's as if Facebook wanted to ensure everyone ahead of Libra's 2020 launch that the coin won't be another way for the company to make money off of its customers by collecting even more personal data from them.

So far 27 partners have surfaced willing to accept or trade the crypto-vouchers, among them companies like eBay, Coinbase, Lyft, Mastercard, PayPal, Stripe, Spotify, Uber, and Visa.

Facebook is also creating a new subsidiary to develop a digital wallet called Calibra, which will hold and dispense Libra once the currency is released.

The company says that "f$3 rom the beginning, Calibra will let you send Libra to nearly anyone with a smartphone, as easily and instantly as you might send a text message and at low to no cost". They also aim to keep its value stable, and each founder will maintain a server that will be a node in the Libra blockchain network that will validate transactions.

The company claims that it won't, which is why it has created a company called Calibra - like the wallet app - which will handle the crypto transactions. Apparently, many people around the world still don't benefit from even basic financial services, especially in developing countries. Governance decisions will be made by a vote of Libra Association members, with Facebook's vote carrying the same weight as other Libra Association members. Calibra will be connected to Facebook's messaging platforms Messenger and WhatsApp, which already boast more than a billion users.

The Libra Association plans to raise money through a private placement in the coming months, according to a statement from the association.

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Taking a look at the previous track record of Facebook, it is perhaps understandable why the European Government officials are voicing their concern about the new project from Facebook.

"Libra will be a "stablecoin", and its value will be tied to a basket of fiat currencies (managed by the Libra Reserve) to minimize volatility", wrote the analysts - although there are concerns about user confusion/adoption.

The subsidiary would only share customer data with Facebook or external parties if it had consent, or in "limited cases" where it was necessary, Facebook said. And best of all, unlike many current eWallets, you can cash out your Libra anytime you want.

The social network's revenue growth has slowed in recent years, and it's looking for new ways to make money outside of advertising.

Facebook hopes to not only power transactions between established consumers and businesses around the globe, but offer some consumers access to financial services for the first time. The social media giant is planning to launch its own cryptocurrency next year and the company dropped a lot of details today.

Libra will be different, Facebook says, in part because its value will be pegged to a basket of established currencies such as the U.S. dollar, the euro, the yen and others. At which point you'll enjoy their world-leading privacy protections", said Green, adding, "I don't think it's possible to express what a catastrophic regression this thing is going to be.