Facebook is all set to take the world off its feet with as it announces its wildly ambitious plan of launching new form of cryptocurrency called Libra, which will integrate with the social media giant’s apps including WhatsApp and Messenger in an effort to make moving money as simple as sending a text message.
Libra is actually the brainchild of a non-profit association by the same name made up of 28 different organizations around the world. Onboard are financial heavyweights like Mastercard, PayPal and Visa, along with notable names like Spotify, eBay and Uber.
It means that Facebook alone won’t govern how Libra operates, but will do so in equal measure with all 28 members making up the Libra Association which will be based in Switzerland. It says that bringing together partners from different industries and locations is a key in the mission to offer a decentralized digital currency, as will be the Libra Blockchain technology that serves as the framework for the ecosystem.
Alongside Libra, Facebook has also launched a new service called Calibra, which will start out as a digital wallet for storing, sending and receiving currency “at low to no cost,” according to CEO Mark Zuckerberg. He hopes that with time the functionality of Calibra will expand to allow users to do things like more seamlessly pay bills or for coffee.
Meanwhile lawmakers around the world including French Finance Minister Bruno LE Maire, Democrat and US senator Sheeod Brown and US Democratic congresswoman Maxine Waters, have expressed their concerns over Facebook’s plans in the finance space, particularly in light of recent issues surrounding user privacy.
Facebook has also confirmed that Calibra will conduct compliance checks on customers who want to use Libra, using commonplace verification and anti-fraud processes. Moreover, the company also plans to refund the customers who lose money because of fraud.
Zuckerberg says Libra plans to launch in 2020.
