On June 18 Facebook founder and CEO Mark Zuckerberg launched a new currency called Libra. In FB post-Mark shared about non-profit Libra Association and Libra currency.
According to Mark, the mission of Libra is to create a simple global financial infrastructure that empowers billion people around the world. Facebook Libra currency is based on blockchain technology and it will be launched in 2020.
Users can send and receive money at nearly zero fees. Along with Libra Facebook also launched a subsidiary called Calibra. And Calibra will help to build services to Libra and launch a digital wallet. The digital wallet to be available in WhatsApp and Facebook Messenger. Facebook cleared that Calibra to not share info with parent co Facebook.
Facebook has also launched a subsidiary called Kelabra that will build on and launch more services for the cryptocurrency that libera is WhatsApp and Messenger will be used to really send and receive the money you could also really scan it and pay for groceries, Uber rides and many other things.
How does Facebook Libra work?
The coin is what is termed a “stablecoin,” which means it is pegged to a basket of existing currencies such as the dollar and the euro and allows users to buy and sell goods on the platform by use of a digital wallet that the system facilitates through its Calibra application.
“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,” CEO Mark Zuckerberg said. “We aspire to make it easy for everyone to send and receive money just like you use our apps to instantly share messages and photos.”
WhatsApp and Messenger will be connected to offer seamless payments around the world at low or no cost in order to bring further accessibility to the effort, especially as WhatsApp remains overwhelmingly popular in underbanked regions like India.
The effort will be backed by a blockchain called the “Libra protocol” that allows “validators” across authorities with program resources “owned by different user accounts authenticated by public key cryptography and adhere to rules specified by the developers.
“All of this is built on blockchain technology,” Zuckerberg explained. “It’s decentralized — meaning it’s run by many different organizations instead of just one, making the system fairer overall.”
“Facebook teams played a key role in the creation of the Libra Association and the Libra Blockchain,” a note explaining the governance structure adds. “While final decision-making authority rests with the association, Facebook is expected to maintain a leadership role through 2019.”
“We think this is among the most important initiatives at the company and may be critical to commercializing the value of its messaging infrastructure,” Loop Capital analyst Alan Gould said.
Still, with the lingering concerns surrounding Facebook’s corporate governance and potential antitrust practices, there is certainly room for caution on the new initiative.