Facebook has unveiled plans to launch a new digital currency called Libra, it is expected this will launch next year.
Calibra is a newly formed Facebook subsidiary whose goal is to provide financial services that will let people access and participate in the Libra network.
Libra is a new global currency powered by blockchain technology. The wallet will be available in Messenger, WhatsApp and as a standalone app.
For many people around the world, even basic financial services are still out of reach: almost half of the adults in the world don’t have an active bank account and those numbers are worse in developing countries and even worse for women. The cost of that exclusion is high — approximately 70% of small businesses in developing countries lack access to credit and $25 billion is lost by migrants every year through remittance fees.
This is the challenge Facebook is hoping to address with Calibra, a new digital wallet that you’ll be able to use to save, send and spend Libra.
Facebook has said that all the group’s members should eventually accept Libra, these include :-
- Payments firms such as Mastercard and PayPal
- Digital businesses including eBay, Spotify and Uber
- Telecoms firms such as Vodafone
- And charities such as the microfinance group Women’s World Banking.
Facebook also said it expected Libra would be bought and sold on currency markets in the future.
The evolution of the Libra Blockchain will be overseen by the Libra Association, an independent not-for-profit headquartered in Geneva. The association will be responsible for facilitating the operation of the Libra Blockchain and managing the reserve that backs the currency. The Libra Association will consist of geographically distributed and diverse businesses, nonprofit and multilateral organizations, and academic institutions.