The world of digital currency, as well as the global banking system, could be facing a potential shakeup with the introduction of “Libra”, Facebook’s own cryptocurrency.
The digital currency market, currently dominated by Bitcoin and Etherium, among others, was caught by surprise after Facebook CEO Mark Zuckerberg launched “Libra” on Tuesday, June 18.
In a statement on Facebook, Zuckerberg said he expects Libra to create a simple global financial infrastructure that empowers billions of people, especially those who do not have access to traditional banking or financial services but owns a mobile phone.
Libra is expected to make sending and receiving money a breeze just by using a phone and the internet, as simple as anyone using apps in sharing pictures and messages instantly
Also launched alongside Libra is Calibra, “an independent subsidiary that will build services that let you send, spend and save Libra.” And like any other existing payment service providers, Calibra will likewise be regulated.
Zuckerberg said Libra was created along with 26 other companies that include payment companies like MasterCard, Visa and PayPal; cab-hailing companies like Uber and Lyft; non-profit organizations like Kiva and Mercy Corps., and even the hugely-popular music-streaming app Spotify.
The Facebook CEO also promised “privacy and safety will be built into every step” of Calibra, including creating “a dedicated team of experts in risk management focused on preventing people from using Calibra for fraudulent purposes.”
“We know it’s a major undertaking and responsibility — and we’re committed to getting this right. We’ve been working with policymakers and experts in areas like financial inclusion, economics, security, privacy and blockchain, and we’ll continue listening to their feedback as we figure out the best way to move forward,” said Zuckerberg.
Zuckerberg likewise disclosed that Libra will be launched officially in 2020. He also promised to share more details about Libra and Calibra in the coming days.