The largest social networking site, Facebook has unveiled on Tuesday its global crypto-currency “Libra”, in a new initiative in payments with the potential to bring crypto-money out of the shadows and into the mainstream.
As Facebook is leaping into the world of crypto currency with its own digital money, it is designed to let people save, send or spend money as easily as firing off text messages.
“Libra” is described as “a new global currency”.
The networking site and some two dozen partners released a prototype of Libra as an open source code to be used by developers interested in weaving it into apps, businesses or services ahead of a rollout as global digital money next year.
The Libra Association head of policy and communications, Dante Disparte explained that the initiative has the ability to allow more than a billion “unbanked” people around the world access to online commerce and financial services.
“We believe if you give people access to money and opportunity at the lowest cost, the way the internet itself did in the past with information, you can create a lot more stability than we have had up until now”.
Though Facebook will just be one voice among many in the association but is separately building a digital wallet called Calibra. This so-called Calibra is being built into WhatsApp and Facebook’s Messenger with the goal of letting users send Libra as easily as they might send a text message.
Libra Association debuted with 28 members including Mastercard, Visa, Stripe, Kiva, PayPal, Lyft, Uber and Women’s World Banking.
In order for the digital currency to operate on a global scale, Libra is relying on a platform of blockchain technology that uses about 100 trusted computer “nodes” to validate and register transactions.
In assurance, financial information at Calibra will be kept strictly separate from social data at Facebook and won’t be used to target adverts.
Also, the new crypto currency will be a regulated currency with subject to local laws in markets regarding fraud, guarding against money laundering and more.