Facebook, together with 27 organizations, are planning to launch a digital currency called Libra. Alongside that is a digital wallet called Calibra. The non-profit Libra Association aims to launch in 2020, with the mission “to create a simple global financial infrastructure that empowers billions of people around the world”.
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The use of encrypted currency or cryptocurrency will pave the way for cashless transactions — a society wherein monetary exchange is done digitally. In other words, you will no need to carry cash with you, as long as the chosen service supports cryptocurrency transactions. Mark Zuckerberg, Facebook’s CEO and Co-founder, aims to solve the lack of bank accounts of mobile phone users, especially to those who don’t want to pay extra fees for transfers.
Given that Facebook is spearheading this effort, the lack of trust is understandable. But like major digital currencies like bitcoin, Libra is built upon blockchain technology. The entire thing is decentralized, managed by “many different organizations instead of just one” for a fairer system. Zuckerberg also pointed out that “privacy and safety will be built into every step”. There will be experts in risk management including fraudulent cases. With fraud protection, Libra coins are refundable if you lose them. Lastly, information shared on Calibra is “kept separate” from information shared on Facebook.
By 2020, WhatsApp and Messenger will support Calibra (as a standalone app) to allow its users to spend Libra coins. Some services that Libra will support are Mastercard, PayPal, Booking, eBay, Spotify, Uber, and even Coinbase, Anchorage, among others. Libra Association hopes to have over 100 cofounding members by the time it launches.
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