Finally, Facebook has divulged the details of its cryptocurrency, Libra, which would allow one to purchase things or send money to people with almost zero fees. One would pseudonymously purchase or use up their Libra online or at local exchange points such as grocery stores, and spend it using interoperable third-party wallet apps or Facebook’s own Calibra wallet that would be built into WhatsApp, Messenger and its own app. Today Facebook disclosed its white paper explaining Libra and its testnet for working out the frizz of its blockchain system before a public start in the first half of 2020.
Facebook won’t fully take charge of Libra, but rather get just a single vote in its governance such as other founding members of the Libra Association, which include Visa, Uber and Andreessen Horowitz that have invested at least $10 million each into the project’s operations. The association will advocate the open-sourced Libra Blockchain and developer platform with its own Move programming language, plus sign up businesses to acquire Libra for payment and even give customers discounts or rewards.
Facebook is starting a subsidiary company also known as Calibra that takes charge of its crypto dealings and defend users’ privacy by never coalesce their Libra payments with your Facebook data so it can’t be used for ad targeting. Real identity won’t be tied to their publicly visible transactions. However, Facebook/Calibra and other founding members of the Libra Association would get interest on the money users invest that is held in reserve to keep the value of Libra stable.
Now, Facebook wants to make Libra the development of PayPal. It’s expecting Libra would become simpler to establish, more omnipresent as a payment method, more systematic with fewer fees, more accessible to the unbanked, more flexible thanks to developers and more long-lasting through decentralization.