Mark Zuckerberg announces the new virtual currency, which will debut in 2020 and wants to be an international payment system with minimal transaction costs.
Partners of Facebook Cryptocurrency
It uses the same technology as Bitcoin, but its partners range from Visa to Mastercard, from Paypal to Uber to Vodafone and Iliad. In all, to date, there are 30 companies in the world that have joined, to which another 70 will be added. It is the new Facebook cryptocurrency created by the non-profit association Libra, based in Geneva, which will debut in 2020. It wants to be the payment system of the future on an international scale and with transaction costs minimum. To make money transfers as simple as sending a photo. Mark Zuckerberg himself explains the intent and ambitions of the new virtual currency: with Libra, he writes, “we aspire to make it easy for everyone to send and receive money just like using our apps to instantly share messages and photos”. “Mobile money”, he writes, increases security, a “particularly important factor for people who do not have access to traditional banks“. In fact, he underlines, “there are about a billion people who do not have a bank account but have a cell phone”.
The founder of Facebook guarantees privacy and security and announces the arrival of a “digital wallet that will be available in whatsapp and messenger and as a standalone app next year”. Services developed by an “independent branch” of Libra, Calibra, which will be regulated as other payment service providers. “All the information you share with Calibra – he explains – will be kept separate from the information you share on Facebook. From the beginning, Calibra will allow you to send Libra to almost anyone with one smartphone with a cost that will be either low or zero. Over time, we hope to offer more services for people and businesses – like paying bills by pressing a button, buying coffee by scanning a code, or riding local public transit without needing to bring money or a meter pass”.
Zuckerberg recalls the names of the companies already involved in the project and says he hopes “to have over 100 members of the Libra association when the network will be launched next year”. He then specified that everything rests “on blockchain technology : a decentralized technology – which is managed by many different organizations instead of just one – making the system more equitable in general” with an encryption “that helps keep your money safe”. “Privacy and security – he assures – will be built at every step. For example, Calibra will have a dedicated team of risk management experts, focused on preventing people using calibrate for fraudulent purposes. We have fraud protection and, if you lose your virtual currency, we will refund you. We also believe that it is important that people have choices so you will have the options to use many other third-party portfolios on the balance network. “There is still much more to learn and do before Libra is officially launched,” concludes the founder of Facebook, defining the project “the beginning of an exciting journey”.
Who is Libra?
The non-profit association Libra – It is the body based in Geneva, Switzerland, which deals with the creation of the cryptocurrency and was founded by Zuckerberg and other international partners. Libra, “an independent non-profit organization, composed of trustworthy, geographically diverse companies, multilateral NGOs and academic institutions”, will be “responsible for facilitating the development of the Libra Blockchain and the management of the Libra Reserve“. The virtual currency system will allow payments to be made via Messenger, Facebook and Watsapp. Zuckerberg himself explains the functioning and ambitions in a post. The project, he writes, is to “create a simple global financial infrastructure that authorizes billions of people around the world” that will be “powered by blockchain technology”, the same at the base of bitcoins that allows transactions to be made. The Libra network “will be based on a secure, scalable and reliable open source blockchain. This will help bring out a new financial ecosystem with new uses designed to encourage financial inclusion and innovation”. Libra “will be supported by a stock of real assets that provide stability and preservation from speculation”.
Payment Operators of Facebook Cryptocurrency
The payment operators – Mastercard, PayPal, PayU (fintech arm of Naspers), Stripe and Visa; among the technologies: Booking Holdings, eBay, Facebook / Calibra, Farfetch, Lyft, Mercado Pago, Spotify Technology, Uber Technologies. Blockchain specialists: Anchorage, Bison Trails, Coinbase, Xapo Holdings Limited; for Venture Capital there are Andreessen Horowitz, Innovative initiatives, Ribbit Capital, Thrive Capital,Union Square Ventures. The founders also include non-profit organizations: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking.