Facebook has announced its plan to launch a new cryptocurrency called Libra in 2020 which will allow users to buy commodities or send money with nearly zero expenses.
Facebook plans to launch the digital currency next year, which will make it easy to move money around the world as easy as it is to send a text message. The social media network would not wholly control this currency and will be doing a partnership with other 27 organisations.
All transactions done by this currency would completely be private and no user fee would be attached to make these transactions. The currency will be decentralised and allow transaction anywhere across the world. It will be accessible to anyone having a smartphone and a data-connection.
Aim of Facebook Libra
According to Facebook, there are around 1.7 billion adults worldwide without a bank account. Libra’s main aim is to serve those adults with monetary services. This will provide the ease of making payments within the Facebook-owned apps.
Users will be able to buy or cash out their Libra online or at local exchange points like grocery stores. Libra could be the most stable alternative for transferring money in areas with unstable government or places with volatile currencies.
Libra will not be entirely controlled by Facebook but in association with several other organisations such as Visa, Mastercard, Uber, Spotify, eBay, etc, as per media reports. Facebook aims at attracting around 100 businesses before the launch of Libra, which is most likely expected to take place in the first half of 2020. However till now, there are already 28 firms in association with Facebook.
Subsidiary app Calibra Wallet
Along with Libra, Facebook is also launching the Calibra Wallet. This app will be working as a digital wallet for people who want to spend Libra. Calibra will be operated by Facebook. This app will also be available in other standalone apps such as WhatsApp and Messenger.
It will also allow users to make offline payments such as paying bills, purchasing groceries or payments for public transport. It will help users facilitate person-to-person payments, traditional e-commerce and spending on apps or gaming services on Facebook-owned properties. Libra is open source, which means anyone would be able to launch their digital wallet and include the currency.