Facebook just confirmed its plans for launching a cryptocurrency, called Libra. It will launch next year. The crypto is currently being created by a nonprofit organization known as the Libra Association of which Facebook is just one member.
The cyrpto is backed up by some heavy duty players –
Other founding members include MasterCard, Visa, PayPal, Uber, eBay, Vodafone and Mercy Corps. The association hopes to grow to 100 members, most of which will pony up $10 million to get the project going. Each member has the same vote in the association, which is headquartered in Switzerland. So Facebook won’t have any more say over the association’s decisions than any other member.
Once it nears the launch, other players will control the crypto as well. Another thing mentioned is that Libra will be more stable than other non-backed up cryptos like Botcoin –
Unlike bitcoin, ether and some other cryptocurrencies, which aren’t backed by anything and swing wildly in response to speculation, Libra will be pegged to a basket of assets that will anchor its value. The Libra Association hasn’t said what those assets will be but indicated they will include “bank deposits and government securities in currencies from stable and reputable central banks.” That suggests major global currencies, like the dollar and the euro, which don’t fluctuate violently day to day.
Along with Libra, Facebook is also going to launch Calibra, a wallet specially created for storing Libra.
When it launches, Calibra will have strong protections in place to keep your money and your information safe. We’ll be using all the same verification and anti-fraud processes that banks and credit cards use, and we’ll have automated systems that will proactively monitor activity to detect and prevent fraudulent behavior. We’ll also offer dedicated live support to help if you lose your phone or your password — and if someone fraudulently gains access to your account and you lose some Libra as a result, we’ll offer you a refund.
Are you excited about Libra? Let us know in the comments below.