Recently, the breaking news reached us that the popular social media website, Facebook, and its owner Mark Zuckerberg, released the information that Facebook To Launch Libra Cryptocurrency. Now, stepping into the all-new crypto world, Facebook has finally made its Libra Cryptocurrency officially. With this, Mark, the CEO of Facebook, vowed that his company’s proposed new digital wallet, Calibra, and Libra cryptocurrency isn’t going to cause any cash-related risk.
Mark’s promise is happening after Facebook edges closer to 24 months of almost endless privacy and governance controversies, which include the Cambridge Analytica data breach, a goof that played a pivotal role in electoral disinformation, and the revelation of its data-sharing agreements with Chinese smartphone manufacturers.
From Facebook, Libra is there to give financial services almost billions of people around the globe who do not have access to traditional banking. Facebook, through its new subsidiary Calibra, wants to bring banking services to the billions of people who are using their platform.
According to Mark Zuckerberg in a post stated that Calibra will roll out their digital wallet app that is going to integrate into WhatsApp and Facebook. They will subsequently branch out into other services. He added that Libra will collaborate with other financial and investment partners and will not be solely a ‘Facebook only’ project.
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Based on the white paper report, the problem that necessitated Libra was the large swaths of the world’s population who are still behind, and about 1.7 billion adults around the world remain outside of the financial system with no access to a traditional bank, though one billion people are having access to smartphones and almost half of a billion are with internet access. The other problems include the exorbitant fees from remittances and the cost of wire to overdraft and Automated Teller Machine charges. In light of the aforementioned problems, Libra is just creating a solution for an inclusive financial system built on the following:
- Secure, scalable, and reliable blockchain
- Backed by a reserve of assets designed to give it intrinsic value
- Governed by the independent Libra Association tasked with evolving the ecosystem.
How Libra Works
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Libra is a mobile app that allows its users to send and receive digital currency. The essential digital wallet will be available on Facebook Messenger and WhatsApp as well as a stand-alone iOS or Android app. It will run on Facebook’s version of blockchain technology. What you need to know from SLiMFactsGH is that the value of Libra will be backed by financial reserve to make it less volatile and more stable and thus, the app will have very low transaction fees. Calibra as the new subsidiary will be handling all the transactions on Libra as well.
Collaborative Efforts
Libra will be seeing the day of light with global partners who are dedicated to providing diverse forms of support to ensure the optimum delivery of the digital wallet. These range of partners are from non-profit organizations, academic institutions, telecommunication companies, payment systems, tech and blockchain firms, and venture capital companies. The purpose of the Libra Association which forms the founding members will also evolve into leading social impact grants to support financial inclusion across the globe. The Libra Association is the governing body that oversees the operations of Libra and other roles. The headquarters of the body is in Geneva, Switzerland. This is because it has a history of global neutrality and openness to blockchain technology.
Privacy Concerns
Facebook has a past of scandals concerning users’ data as a result of the breach of privacy. In light of its recent bid to launch Lira, there has been serious concern about the use of its financial data. According to Facebook, the financial information will be handled separately from the network data. This is because will not have full control of Libra as it is one of the founding members of the Libra Association said early on.
What’s Next For Libra?
In summary, the Libra collaboration will continue to research to help develop the blockchain to be more robust and the association will be there to identify great social impact partners aligned with our joint mission and is going to work with them to raise a Social Impact Advisory Board and a social impact program.
To go, Facebook Sets To Launch Libra Cryptocurrency, and here’s all that you need to know about it SLiMFactsGH was proud to brief you on this information.