After a lot of rumors and leaked information, Facebook finally confirmed its plans to launch its own blockchain network and crypto currency. Accordingly, this crypto currency will be named Libra, based on the basic blockchain and will be launched in 2020.
Facebook said the Libra currency would not be a speculative asset like Bitcoin, but would be a form of digital currency. Facebook users will be able to use the Libra currency to pay for both online and offline services.
Partners in the Non-Profit Libra Association.
Previously, Facebook will use Libra as a method of transferring money between individuals in developing countries and lack access to banking services. It also means that you can transfer money across the country quickly and without worrying about service fees.
Next, Facebook wants to create the world's first mainstream electronic currency. This will be a form of global payment, decentralized and stable like the dollar. This currency will be able to be used to buy all kinds of goods, to support all types of financial, banking and credit services.
Users can transfer funds across countries with Libra.
Facebook has partnered with 27 different companies, establishing the Libra Non-profit Association including Coinbase, Mastercard, Visa, eBay, PayPal, Stripe, Spotify, Uber, Lyft and Vodafone. The organization will also contribute to stockpiling the Libra, ensuring that the value of this cryptocurrency is based on a type of asset (either dollar or gold). Therefore, Libra will not be subject to price fluctuations and scarcity like Bitcoin.
To develop this project, Facebook also established a subsidiary named Calibra. Former product manager for Twitter and Instagram, Kevin Weil will be the head and responsible for developing this project.
Weil said Calibra will develop an decentralized blockchain platform to operate the Libra currency. Because this is the blockchain platform, all information will be transparent, public and uneditable.
Facebook will also launch new financial services, including a Libra-based credit service. This platform will provide an alternative to the current banking system, especially for people in developing countries.