We already wrote earlier about Facebook’s intentions to develop and release its own cryptocurrency, as well as that the company is already developing and negotiating with potential partners.
However, all these events were nothing more than rumors, since the company itself did not officially announce anything. However, now Facebook has withdrawn its project from the shadows and announced the imminent launch of its creation.
The project will be developed by a consortium of financial and technology companies. Note that the project has gathered around him a large number of famous and influential companies that act as partners of Facebook. According to the latest information, the launch of the Libra cryptocurrency itself is scheduled for the first half of 2020.
Libra is a digital currency secured by a reserve of real assets, such as bank deposits and short-term government securities. These assets will be stored in the network of project partners. Such a structure is primarily intended to strengthen the credibility of the project and stabilize the course.
According to company representatives, although currency prices will not always coincide with the price of underlying assets, holders must have a “high degree of confidence” that they can always convert coins into traditional currency based on the exchange rate.
Libra will bargain on online exchanges that Facebook hasn’t yet named.
Using Cryptocurrency Libra
For the use of cryptocurrency, Facebook introduced Calibra wallet and has already started accepting applications for its testing. The wallet will be integrated into Messenger and WhatsApp. Facebook notes that they expect to use Calibra for payment transactions in all their projects, for example, for purchases on Instagram.
Transactions for users of the new cryptocurrency will be absolutely free, and for companies accepting payments, there will be a minimum commission. It will be possible to purchase digital currency from Facebook in your wallet using a bank card or for cash through physical points of sale. However, to use a cryptocurrency will need to undergo an identification procedure.
As Calibra head David Markus noted, in case of distrust or inconvenience, users will be able to use other wallets to store cryptocurrencies. He also assured that the data from Calibra will not be used for advertising targeting, and the employees involved in the project are separated from the rest of the company.
Libra will be managed by a closed group of organizations that is different from decentralized Bitcoin. In this case, the blockchain code will be published in the public domain, which will allow third-party companies to create applications for it.
The managing consortium based in Geneva already includes Mastercard, Visa, Spotify, PayPal, eBay, Uber and Vodafone, as well as venture capital firms Andreessen Horowitz and Thrive Capital. It also includes four blockchain companies Anchorage, Bison Trails, Coinbase and Xapo Holdings.
Each participant, with the exception of non-profit organizations, will contribute at least $ 10 million to the project. By the time the cryptocurrency is launched, the consortium plans to recruit about 100 participants.
Libra’s idea is to reach people who do not have access to financial services and digital banks, Marcus says. He estimates that it is about 1.7 billion people.