Facebook, the tech giant is always engaged
in the welfare of netizens and safe internet. Now Facebook is taking a big jump in the global
payment system. Today, Facebook Inc. unveiled plans to establish a cryptocurrency called
‘Libra’ with digital wallet ‘Calibra’. This cryptocurrency will be run by an association
comprised of other corporate investors and non-profit members, with an expected launch
in the 1st half of 2020. Here are all the details about ‘Libra’ and
‘Calibra’ – ‘Libra’ will be a digital currency which will
be backed by a reserve of real-world assets, including bank deposits and short-term government
securities, and held by a network of custodians. The structure is intended to foster trust
and stabilize the price. Although Libra prices may not always align
with the underlying assets, holders should have a “high degree of assurance” that they
can convert coins into traditional currency based on an exchange rate, according to the
project’s information. Libra transactions will be powered and recorded
by a blockchain, which is a shared ledger of transactions maintained by a network of
computers. The software will be “open source,” meaning companies outside the association
can build applications on top of it. The association plans to move toward a permissionless blockchain
within five years of Libra’s launch. The Libra Association is a 28-member independent
non-profit based in Geneva, Switzerland. It will oversee major decisions about the digital
coin. There is a minimum $10 million investment to join, except for non-profit members like
financial inclusion group Kiva. The association aims to have 100 members by launch.
Each will have one vote on important issues. Facebook will be a member via Calibra, a newly
created subsidiary that will offer a digital wallet for Libra.
‘Calibre’ is useful for Individuals and merchants will be able to use to store, send and receive
Libras. It will be available as a standalone app on smartphones, as well as a button within
Facebook’s Messenger and WhatsApp products. Facebook eventually wants to make Calibra
available for transactions across its family of apps, such as digital checkouts for purchases
on Instagram. Executives envision users purchasing Libra
through the app either by linking a bank account or, for people without banks, at physical
locations like cash transfer businesses and convenience stores. Calibra engineers are
involved in building the blockchain, though Facebook says it intends to keep the currency
and the wallet in separate entities. About Privacy and Security, Calibra will provide
support to customers who lose phones or their passwords, and refund customers whose Libras
are stolen by fraudsters, Facebook said. Calibra will only share user data with parent
company Facebook and third parties when it has customer consent, or in other “limited
cases,” such as when law enforcement requests information, according to a statement.

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