Facebook is all set to extend its branches to the financial world with blockchain technology by launching its new cryptocurrency, Libra. The goal of the Libra blockchain is to serve as a solid foundation for financial services, including a new global currency, which could meet the daily financial needs of billions of people.
Facebook partnered with 27 other organizations around the world to start the non-profit Libra Association and created this new digital currency on a secure and stable open-source blockchain, which is planned to launch in 2020. Read the White Paper.
Libra cryptocurrency will be similar to bitcoin — it is built on a secure, scalable, and reliable blockchain, where nor government and neither bank could oversee the transaction. Instead, it is exchanged digitally between buyers and sellers using secret codes for security. And Libra digital currency will be available to anyone with a smartphone and internet connection. Also Libra is going to be a stable coin — so it’s a good medium of exchange, as merchants can be confident they won’t be paid a Libra today that’s then worth less tomorrow.
Libra blockchain is designed and using a new programming language called, Move for implementing custom transaction logic and “smart contracts”. Move programming language designed with safety and security as the highest priorities.
Facebook is also launching a regulated subsidiary company called Calibra that will build services that let you send, spend and save Libra. It will include a digital wallet that will be available in WhatsApp and Messenger and as a standalone app next year. Calibra will be regulated like other payment service providers. And any information you share with Calibra will be kept separate from information you share on Facebook. From the beginning, Calibra will let you send Libra to almost anyone with a smartphone at low to no cost.
Facebook has just created a new digital bank with its stable digital currency and wallet. We have to wait until 2020 to find out if this new organization can really promote the world of blockchain and decentralized currencies.