Facebook announces Libra and Calibra: new cryptocurrency and wallet arriving by 2020

Exactly as we had announced a few days ago, today Facebook has officially announced the Libra and Calibra projects. The first is a cryptocurrency while the second is the digital wallet that will allow you to keep track of your balance and manage transactions.

A very important thing to emphasize is that Libra will not be the Facebook cryptocurrency, but of the non-profit organization Libra Association. In fact, Facebook has collaborated with 27 other companies including Iliad, Spotify, Mastercard, Vodafone, PayPal, Lyft, eBay, Booking, Uber and Visa to set up the Libra Association

Pic Source – TheBlockCrypto

Although every member of the association has a single right to vote, Facebook actually has two, since Calibra is in fact a company created by Facebook and part of the association.

The objective, in practice, is to improve financial inclusiveness and make the transfer of values ​​and payments using the internet – declared Dante Disparte, responsible for policy and communications, Libra Association.

Libra’s main objective is to guarantee access to simple and economical economic management for developing populations. The social network giant estimates that there is about 31% of the world population, or 1.7 billion people, who cannot entrust their finances and a banking system because it is too expensive.

In other words, the creation of Libra and Calibra is going to creep into the biggest plan that involves bringing cheap internet connectivity through the use of cubesat in orbit around the Earth.

LIBRA IS OPEN SOURCE BUT FACEBOOK’S PROFITS WILL COME FROM CALIBRA

Facebook Libra-Calibra

Although the main system to control and manage the account and the payments through the cryptocurrency is the Calibra platform that will be made available both on the Messenger, WhatsApp and Instagram apps and as a stand-alone app on Android and iOS (perhaps using the iOS Cryptokit framework 13 ), Facebook has taken steps to make open-source with the Apache 2.0 license at the base of Libra blockchain. This will allow any developer to download the code and create their own wallet to be able to distribute under the dorm of a website or mobile app.

However, Facebook has big plans for Calibra. One of the plans of the giant is to make it a platform available and accepted on any service and store, be it online or offline. In fact, it aims to replace Mastercard and Visa (which have their plans to make their market flourish with Libra) as a worldwide money exchange system.

LIBRA WILL BE MORE STABLE THAN BITCOIN

The main fear people have of Bitcoin, Ethereum or criprovalute in general is their volatility, with the value that can fluctuate by several percentage points from day to day. In order to stabilize it and thus make it more similar to traditional currencies, the Libra Association has decided to link the value of the cryptocurrency to a reserve of concrete financial assets.

It will always be a decentralized virtual currency based on blockchain but with the advantage of having the support of large world-class companies, as well as banks and institutions.

Zorain Zubair
Zorain Zubair
Zorain is co-founder of TechLapse. Based in Pakistan, Zorain is currently studying Business Management and aims to achieve the title of Chartered Accountant. Zorain loves writing about various technology news. He can be reached at: [email protected]

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