Facebook has officially announced its entry into cryptocurrency. The company has revealed the details of of its cryptocurrency Libra, which will let you buy things or send money to people with nearly zero fees.
Facebook and whatsapp users can make financial transactions across the globe with facebook’s digital currency, a move that could potentially shake up the world’s banking system.
How this will work?
You can now Cash in a local currency, get Libra, spend them like dollars without big transaction fees or your real name attached, cash them out whenver you want.
Experts say with more than 2.4 billion people using facebook, Libra could be a welcome lift to Facebook’s profits and could be a huge moneymaker.
You could buy or cash out your Libra online or at local exchange points like retail stores, and spend it using interoperable third-party wallet apps or Facebook’s own Calibra wallet that will be built into WhatsApp, Messenger, and its own app.
In order to keep privacy concerns at bay Facebook will launch a subsidiary company called Calibra .
Calibra will handle its crypto dealings and protects users’ privacy by never mingling your Libra payments with your Facebook data so it can’t be used for ad targeting.
“Success will mean that a person working abroad has a fast and simple way to send money to family back home, and a college student can pay their rent as easily as they can buy a coffee” Facebook writes in its Libra documentation
Facebook currently has 28 founding members which includes
- Payments: Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa
- Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, Mercado Pago, Spotify AB, Uber Technologies, Inc.
- Telecommunications: Iliad, Vodafone Group
- Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited
- Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures
- Nonprofit and multilateral organizations, and academic institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking
The company is expecting to add 100 members before launch and said even it will accept invitations from its direct competitors like google and twitter.