Facebook Corporation plans to enter the virtual money market with its own cryptocurrency. Compared to many existing coins, Facebook’s cryptocurrency should become a full-fledged alternative to the traditional money. It is based on blockchain technology.
The cryptocurrency is named Libra, although it was unofficially called GlobalCoin before its announcement. The company has made serious preparations for the further launch of the virtual money project, which is scheduled to start in the first half of 2020. Especially for the project implementation, the social network created the website libre.org, where all information about the cryptocurrency is available. The corporation also took care of the preservation of electronic coins by developing a cryptographic wallet called Calibra. In the future, Facebook is going to integrate its own currency into its corporate social platforms, including Instagram, WhatsApp, FB Messenger.
The Libra cryptocurrency, which is still under development, does not differ in its autonomy. In fact, it is a virtual coin, the rate of which is linked to other units. Facebook intends to link its Libra to real assets.
Initially, the currency will be secured by bank deposits and securities, although the list of assets will increase as the project develops. It is planned that Libre’s connection with existing assets will attract more interest from potential investors, as Facebook’s cryptocurrency was originally designed as a means of carrying out money transactions within Facebook’s proprietary projects (existing and future). Thus, inside Instagram or, for example, WhatsApp users will be able to pay with the new Libra. At the same time, the social network does not plan to puzzle users with the commission for financial transactions, shifting it directly to the platforms that accept cash payments.
In the future, as the Libra project expands, the corporation will use the cryptocurrency in other services as well, taking it beyond the firm’s web-based platforms. Facebook’s idea assumes that its virtual money can become a full-fledged substitute for real banknotes and will allow you to pay with them in shops, cafes, transport and other public places.
To work with Libra and the specialized Calibra platform, the company will launch an application with the help of which it will be possible to purchase tokens. At the same time, payments will be accepted from bank accounts or cash in the immediate points of sale, which can be opened by partners of the corporation. At the same time, Facebook cryptocurrency has its limitations. So, to work with it, the developers have provided for the identification procedure, which means for the user to fully disclose their personal data. Representatives of Facebook specify that if the user does not want to provide their data, the cryptocurrency can be linked to other cryptocurrencies.