Facebook has released more details of its planned currency Libra. The first product will be a digital wallet designed to make it easy to save, spend and transfer money over the internet. The wallet will be available in Messenger, WhatsApp and as a standalone app, with an expected launch in 2020, the company said.
Facebook said the new service aims to reduce financial exclusion, as many people around the world still lack access to basic financial services. From the start, users will be able to send Libra over the Calibra wallet "to almost anyone with a smartphone, as easily and instantly as you might send a text message and at low to no cost", Facebook said. In time, it plans to offer additional services for consumers and businesses, like paying bills with the push of a button, buying a cup of coffee with the scan of a code or riding public transit without needing to carry cash or a metro pass.
Security and privacy
The company promised security protections, "using all the same verification and anti-fraud processes that banks and credit cards use", and automated systems that will proactively monitor activity to detect and prevent fraudulent behavior. Live customer support will also be available.
Facebook also pledged to not use Calibra customers’ account information and financial data to improve ad targeting on the social network or its other apps. In limited cases, personal data may be shared "to keep people safe, comply with the law and provide basic functionality to the people who use Calibra", Facebook said. Otherwise any data sharing with third parties or other Facebook services will require prior consent from customers.
The company noted that the Calibra service is still in development and it will be consulting experts to "to make sure we can deliver a product that is safe, private and easy to use for everyone." Interested users can already sign up online to receive more information as the service approaches launch.Libra Association
Libra is expected to work as Facebook's own currency based on blockchain, and it has lined up a number of partners to support the launch of the system under the name the Libra Association. The founding members are:
The Libra Association will be responsible for facilitating the development of the Libra Blockchain, based on open-source software, and managing the Libra Reserve, which will be backed by real assets. The Association is an independent, not-for-profit organization, made up of geographically diverse organisations and is tasked with coordinating the technical roadmap of the Libra Network and preparing for the transition to a fully permission-less blockchain.
