After keeping the audience on the edges of their seat for almost a year, Facebook has finally unveiled Libra – the cryptocurrency project expected to launch in 2020.
According to reports, the social media giant has been working on the plans and technology of its cryptocurrency launch since the past year. However, the project will be managed by a Switzerland-based foundation initially backed by Facebook along with other 27 organization.
These organizations will be called the Founding Members and includes notable businesses like Uber, Lyft, Visa, Stripe, MasterCard, and PayPal. Investors including Andreessen Horowitz and Union Square Ventures along with nonprofits and academic institutions like Kiva and Women’s World Banking has also collaborated with Libra.
The company hopes to have around 100 Founding Members before the mega launch next year.
These members will get to run validator nodes for the Libra blockchain in exchange for investing at least $10 million in the foundation’s reserves that will back the cryptocurrencies token value.
These founding members will also receive the special Libra ‘investment tokens’ that will differ from the basic cryptocurrency.
Above all, Libra will give some of these businesses a new platform to garner more customers.
Initially, Calibra will work on Messenger, WhatsApp, and as a standalone iOS and Android app. The makers claim that since Libra is an open-sourced platform, there is a possibility that the new digital wallet would eclipse Facebook’s in popularity. Additionally, Facebook confirms that they will make no profit out of the platform for a long time.
It is also anticipated that Libra would be locally regulated as the social media giant is currently in the process of obtaining its own money transmitter licenses in many countries including the USA.
Libra is hoping to address 1.7 billion unbanked global users (who do not have access to a digital account to manage their money). The Aim of Libra is to to enable people to send money to anyone, from anywhere for a low fee.
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According to reports, the social media giant has been working on the plans and technology of its cryptocurrency launch since the past year. However, the project will be managed by a Switzerland-based foundation initially backed by Facebook along with other 27 organization.
These organizations will be called the Founding Members and includes notable businesses like Uber, Lyft, Visa, Stripe, MasterCard, and PayPal. Investors including Andreessen Horowitz and Union Square Ventures along with nonprofits and academic institutions like Kiva and Women’s World Banking has also collaborated with Libra.
The company hopes to have around 100 Founding Members before the mega launch next year.
These members will get to run validator nodes for the Libra blockchain in exchange for investing at least $10 million in the foundation’s reserves that will back the cryptocurrencies token value.
These founding members will also receive the special Libra ‘investment tokens’ that will differ from the basic cryptocurrency.
Above all, Libra will give some of these businesses a new platform to garner more customers.
Facebook’s role in Libra
Facebook will be a member of the governing foundation and of course – the maker of the digital walled ‘Calibra’ that will be used to make transactions.Initially, Calibra will work on Messenger, WhatsApp, and as a standalone iOS and Android app. The makers claim that since Libra is an open-sourced platform, there is a possibility that the new digital wallet would eclipse Facebook’s in popularity. Additionally, Facebook confirms that they will make no profit out of the platform for a long time.
How it differs from Bitcoin
Libra is nothing like Bitcoin or similar digital currencies. Firstly, it does not serve a similar system as the traditional financial system. Instead, the goal of its launch is to extend the cryptocurrency to users who don’t have access to conventional banking or stable ‘government created’ currency.It is also anticipated that Libra would be locally regulated as the social media giant is currently in the process of obtaining its own money transmitter licenses in many countries including the USA.
Libra is hoping to address 1.7 billion unbanked global users (who do not have access to a digital account to manage their money). The Aim of Libra is to to enable people to send money to anyone, from anywhere for a low fee.
Read next: Facebook launches its blood donation feature in the United States
