Facebook revealed its awaited cryptocurrency plans Tuesday, announcing “Project Libra.”
It’s a new type of digital money designed for the billions of people using Facebook apps and social network. Users will soon be able to shop with and send the Libra currency on Messenger and Instagram, as well as use it with a wide variety of other merchants like Uber, Spotify and MasterCard. Executives suggest it will first be distributed on Messenger and WhatsApp in mid-2020. It will be also a new digital wallet called Calibra, which will be operated by Facebook. It will help transferring money. Initial members of the Libra foundation are Facebook and 27 other partners, including Visa, MasterCard, PayPal, Coinbase, and venture capital firms like Andreesen Horowitz and Union Square Ventures.
Calibra digital wallet
As many as 100 partners will be onboard by the time the currency debuts. Members are also required to support a reserve fund to keep the value of the currency stable. In order to avoid the volatility of cryptocurrencies like Bitcoin, each unit of Libra will be backed one-to-one in a basket consisting of dollars, pounds, euros, and Swiss francs. The currency’s blockchain, which is open source, will be programmed in a new language developed by Facebook called Move. The new service also provides Facebook with new opportunities for advertising and e-commerce.