Facebook's cryptocurrency, Libra, should be available by 2020. In addition, the social network also offers a suitable Wallet, which is cared for by a new subsidiary. Libra is to differ from other cryptocurrencies.
Next year the cryptocurrency Libra, which is maintained by the Libra Association, will be available. They say it's so easy today to do banking business. Nevertheless, a good 1.7 billion people in the world are excluded from the banking system, even if they have a mobile phone that can normally be used for banking transactions.
Blockchain-based cryptocurrencies could change this because they are decentralized and available everywhere, cheap and secure. However, the price fluctuations would have deterred many people. In addition, providers of other cryptocurrencies have tried in part to circumvent regulations instead of working with regulators to find better anti-money laundering rules.
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Libra, on the other hand, is to be supported by currency deposits based on stable currencies. Thus there should be no short-term fluctuations. In addition, the company wants to cooperate with regulators and various industries. The Libra Association regards itself as independent. In total there are 28 founding members, including Facebook, Mastercard, Visa, PayPal, Spotify and Uber. But also Lyft, Vodafone and Women's World Banking.
The underlying blockchain technology is now available as Open Source under the terms of the Apache License 2.0. There will be a test network until the system is officially available in the first half of 2020.
Facebook also founded its subsidiary Calibra. It offers a digital wallet to trade the currency, such as sending money to friends or scanning a code to pay for something.
Calibra should be equipped with security mechanisms and use the same verification and anti-fraud mechanisms that banks use. Outsourcing to a subsidiary is also intended to guarantee data protection. "Calibra will not share account information or financial data with Facebook or any third party without customer consent," said a Facebook press release. There are exceptions, of course, as the release clarifies. "The limited cases where this data may be shared reflect our need to keep people safe, comply with the law and provide basic functionality to the people who use Calibra."
The people involved in Libra are supposed to earn money by paying interest on the money exchanged by users. This should also be done directly via the app if it is linked to a bank account. Libra should then also be suitable for transfers across national borders. Of course, the companies involved are also planning to accept Libra payments.
Calibra will offer its own wallet for Libra. The function will also be integrated into Facebook Messenger and WhatsApp.
What do you think of Libra or cryptocurrencies in general? Do you use one already? Let us know in the comments.