Facebook, since news of its cryptocurrency popped up, has been banking high on the new arena and with its official announcement, the new wallet could help attract more people and could compete with the likes if Google Pay and more.
Many analysts believe Zuckerberg wants to create a US version of the Chinese service WeChat, which combines social networking, messaging and payments in a single app. Libra would take Facebook a step closer to that end. The Libra Association says that it's "fully backed by a reserve of real assets", but doesn't clarify what those assets are. In addition to Facebook and Calibra, there are a number of payment processors in the Libra Association, including MasterCard, Visa, and PayPal.
One of the stated goals of Libra and Calibra is to make basic financial services more accessible to people around the world.
Libra will trade on a network of exchanges, which Facebook did not identify.
Technically, the Libra network will be a permissioned, blockchain-like network. "In joining the Libra Association, there is an opportunity to better reach Spotify's total addressable market, eliminate friction and enable payments in mass scale".More news: Stephen Colbert Torches Mitch McConnell - With Jon Stewart’s Help
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The association plans to move toward a permissionless blockchain within five years of Libra's launch.
The madmen actually did it. Facebook today announced that it's forming a new subsidiary focused on financial services, Calibra, and that its first application will be a mobile app through which people can manage everything involving the Facebook's cryptocurrency, Libra. Facebook will be a member via Calibra, a newly created subsidiary that will offer a digital wallet for Libra. Facebook has come under greater scrutiny in the previous year following a number of revelations about its treatment of users' data and concerns about privacy.
Facebook said that if people use Calibra or similar wallets, their individual transactions won't be visible on the Libra blockchain.
Of course, Facebook's recent privacy blunders could very well leave many folks hesitant to use Calibra and Libra. Additionally, Calibra will make sure it doesn't share users' information with other apps without his or her knowledge, which becomes a must after all the data breaches Facebook has been a part of. "Calibra will use Facebook data to comply with the law, secure customers' accounts, mitigate risk and prevent criminal activity".
In a statement released minutes ago, Facebook said Libra would be available under a project labelled "Calibra".