Facebook has announced that it is launching its own cryptocurrency next year. The new digital currency will be called Libra.
The social media giant is also launching a new company called Calibra, and their first product will be the new digital currency.
Today we’re sharing plans for Calibra, a newly formed Facebook subsidiary whose goal is to provide financial services that will let people access and participate in the Libra network. The first product Calibra will introduce is a digital wallet for Libra, a new global currency powered by blockchain technology. The wallet will be available in Messenger, WhatsApp, and as a standalone app — and we expect to launch in 2020.
What is Libra?
Libra is designed to be a global currency that can be used by anyone with an internet connection. Unlike traditional currencies, which are controlled by central banks, Libra will be powered by blockchain technology. This means that transactions will be secure, transparent, and decentralized. The goal is to create a more inclusive financial system that can provide services to people who are currently underserved by traditional banks.
If you have an internet connection today, you can access all kinds of useful services for little to no cost — whether you’re trying to keep in touch with family and friends, learn new things, or even start a business. But when it comes to saving, sending, and spending money, it’s not that simple.
The Role of Calibra
Calibra will play a crucial role in the Libra ecosystem. As a subsidiary of Facebook, Calibra will develop financial services and products that leverage the Libra currency. The first of these products is a digital wallet, which will be integrated into Facebook Messenger and WhatsApp, as well as available as a standalone app. This wallet will allow users to send, receive, and store Libra securely.
The introduction of Calibra and Libra aims to address several issues in the current financial system. For example, many people around the world do not have access to basic banking services. According to the World Bank, approximately 1.7 billion adults remain unbanked. By providing a digital wallet that can be accessed via a smartphone, Calibra hopes to bring financial services to these underserved populations.
Moreover, the use of blockchain technology will ensure that transactions are secure and transparent. Each transaction will be recorded on a public ledger, which can be audited by anyone. This level of transparency can help reduce fraud and increase trust in the financial system.
Another significant advantage of Libra is its potential to reduce transaction fees. Traditional financial institutions often charge high fees for cross-border transactions. Libra aims to make these transactions more affordable, which could be particularly beneficial for people who rely on remittances from family members working abroad.
Facebook has also emphasized that Calibra will have strong privacy protections. The company has stated that Calibra will not share account information or financial data with Facebook or any third party without customer consent. This is an important consideration, given the growing concerns about data privacy and security.
You can find out more details about the new Libra cryptocurrency over at Facebook at the link below.
Source Facebook
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