What you need to know
- Facebook's Libra cryptocurrency will be launched next year.
- The cryptocurrency will be governed by the Libra association, which currently has 28 founding members.
- Sending and receiving money as well as buying things using Libra will be made possible with Facebook's Calibra wallet.
Facebook's rumored cryptocurrency platform has finally been officially announced. The company today released a white paper that explains exactly how its global cryptocurrency, dubbed Libra, differs from other cryptocurrencies that we have seen so far. Facebook is hoping to launch Libra in the first half of 2020, allowing users around the world to not just buy things but also send and receive money with minimal fees.
With Libra, Facebook is aiming to create a truly global digital currency that can help empower billions of people across the world. Unlike most cryptocurrencies currently out there, Facebook's Libra will be backed by a reserve of real assets, which means its value will remain largely stable. Libra will be governed by the Libra Association, an independent non-profit organization that has its headquarter in Geneva, Switzerland. Apart from Facebook, the Libra Association includes several other leading companies such as PayPal, Mastercard, Visa, eBay, Coinbase, Spotify, Vodafone, Lyft, Uber, and more.
While the association has a total of 28 founding members currently, Facebook is hoping that it will be able to reach 100 founding members before the cryptocurrency launches officially. In addition to governing the currency, the association will promote the open-source Libra Blockchain and "Move" programming language.
You will be able to use Libra with the help of Facebook's Calibra wallet, which will be available as a standalone app next year. It will also be available within Messenger as well as WhatsApp. Facebook's primary target with Libra, however, will be the 1.7 billion adults around the world that are currently outside of the financial system. Libra could also help Facebook boost its revenue significantly in the future. Barclays had predicted in March that the company could see an increase of $19 billion in revenue by 2021 if its cryptocurrency proves successful.