Although the cryptocurrency market experienced a big drop at the end of 2018, the dynamic is definitely changing this year. Bitcoin is leading the pack, and now Facebook is planning to join in on the cryptocurrency bandwagon. Specifically, it will do so with Libra, a new virtual currency that will be integrated in apps like WhatsApp and Messenger through the Calibra wallet service. It appears that the giant company led by Mark Zuckerberg is going all in on this payment system and they’ll be doing so with the support of a large business community. Almost 30 brands have already joined in on this project to supervise and monitor the new currency. Also, it’s expected that once it’s officially released, the number of members in the Libra association will grow exponentially.
A cryptocurrency backed by real assets
The fact that Facebook plans to integrate Libra in such well-known tools as WhatsApp and Messenger may be a trigger for millions of users to almost automatically give their trust to this innovative business. Libra stands out for being a different kind of cryptocurrency, not to mention the fact that it’s based on blockchain technology. In this case the value of the currency isn’t going to depend solely on the ups and downs produced by its users.
There will be a lot of companies watching over Libra and they’ll also provide financial backing at all times. MasterCard, Visa, Uber, Spotify, Vodafone, and PayPal will contribute and prevent the devaluation of Libra while managing the validation nodes. What’s more, the Libra Association will have its headquarters in Switzerland. If the model works, the rest of the digital currencies will probably also greatly reduce their volatility.
What is Calibra?
Facebook has also revealed a lot of information about Calibra. This is the name they’ve given the wallet that will be able to be used in different apps on your smartphone. This way, it’ll be easy to transfer money to your contacts in a matter of seconds. Security —or lack of it— is the factor that has most tarnished the image of Zuckerberg’s company in recent months. That’s why the developers of Libra and Calibra are working to make sure both the cryptocurrency and wallet service are trustworthy for users. In fact, Facebook assures that the wallet will have integrated anti-fraud protection, reports in the app, and a customer service feature to protect users’ money.
Facebook has also communicated that commissions will be low and transparent, which is essential in changing Libras for any local currency. The long-term goal is to be able to pay bills or charges in businesses, restaurants, and stores with Libra. Meanwhile, other financial services like credits and deposits will be offered as well. This will be the main way they’ll attract new investors and increase the value and stability of the virtual currency.
Release date of Libra and Calibra
Calibra is still in development, although everyone is thinking 2020 will be the year of its release. Plus, the wallet will be able to be downloaded as an independent app. That said, that doesn’t mean we won’t be able to use it in other services like WhatsApp to send or receive money as quickly as it takes to send a text message. Or at least that’s what Facebook is promising for now.