Facebook's Libra cryptocurrency is official, Calibra wallet app coming 2020

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The initiative has the potential to allow more than a billion "unbanked" people around the world access to online commerce and financial services, said Libra Association head of policy and communications Dante Disparte.

Here's a guide to help you understand it.

The unveiling of Facebook's Libra cryptocurrency was immediately met with political opposition in Europe. Merchants around the world are envisioned letting people convert cash into digital Libra coins, which than could be deposited into digital wallets to be used for payments. The first product to come from the company will be a digital wallet for Libra, the new global currency powered by blockchain technology.

No. The strongest point to make it go wide and succeed in replacing currencies like the dollar or the euro, is that Libra has strong partners behind it.

"All over the world, people with less money pay more for financial services", the Libra site states, citing burdens such as steep usage fees and high-interest payday loans.

The Libra Association, which effectively acts as a governing body for Facebook's cryptocurrency, also counts financial institutions and payment providers like Visa, Mastercard, Paypal and Stripe as well as companies like Uber, Lyft and Ebay among its members.

What can I do with Libra?

Libra is a stablecoin created to tame the volatility of cryptocurrencies and thus be useful for day-to-day commerce. By using cryptography and blockchain - a technology in which every device using Libra can vouch for the veracity of the currency owner and transaction - this means it's secure by its very nature.

In addition to competition and privacy concerns, regulators will also be concerned about Facebook's wish to enable its cryptociurrency to be converted into other currencies, raising the prospect of increased money laundering. Calibra will be integrated in Messenger and WhatsApp along with launching as a standalone app, and Facebook envisions a future where you'll be able to spend, send, and save Libra as easily as you would send a message to someone.

Facebook has also said that account holders will face the same know your customer requirements as with mainstream banking accounts and that it will deploy computer programs and algorithms to detect any suspicious transactions. Last year, USA regulators said they were looking into the possible misuse of personal information belonging to as many as 50 million Facebook users.

The company claims that it won't, which is why it has created a company called Calibra - like the wallet app - which will handle the crypto transactions.

"If you're concerned with Facebook knowing too much or having too much access to your private data or social graph, the GlobalCoin will give Facebook even more direct access to your financial information", he told The Sun.

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