For a while, Facebook’s plan to branch out into the crypto world has been in the news. Analysts have had a field day talking about how the move could boost the crypto community. Critics also had things to say about the plan. However, regardless of what analysts, critics, and skeptics think, a lot of crypto enthusiasts have been monitoring Facebook, to know about the launch of the coin.
On June 18, 2019, Facebook unveiled the Libra cryptocurrency, and it is interesting to note that since the announcement, there has been a lot of frenzy about the development. Facebook did not only unveil the coin, the social media networking giant also mentioned there would be a new subsidiary of Facebook called Calibra, and there will also be the Libra Association, which is an independent consortium that is supported by some big names in the tech industry. Furthermore, it has been made clear that prospective users of the Libra cryptocurrency will not need to own a Facebook account in order to enjoy the functionalities of Libra.
There are twenty-eight founding members of the Libra Association, and some of the embers include Mastercard, Visa, PayPal, Lyft, Uber, and Coinbase among others. According to the Libra Association’s head of policy and communications, Dante Disparte, wherever there are systems with the Mastercard or Visa logo, Libra would also be accepted on such system.
According to the announcement made by Facebook, customers who want to hold or transfer Facebook’s Libra token will have several options to facilitate the transactions. This is indicative of the fact that Facebook is also looking to facilitate seamless international remittances.
Calibra is intended to create financial products and services with the Libra network, and get full governing from the Libra Association. According to the announcement, Calibra will begin with the development and introduction of a digital wallet that will be used for the storage of Libra coin, and thus facilitate easy transfer of funds between the users, as well as securely store the coins. It will interest you to know that customers will get access to the functionality of the wallet via a new app that will be available on Android and iOS platforms, or via Facebook’s WhatsApp and Messenger services. There are indications that the Libra blockchain will get a full launch in 2020.
Unbanked and Underbanked Population
According to Disparte, the main goal to achieve is financial inclusion, and the unbanked are the targeted audience. He further added that the aim of the project is to create a financial ecosystem that will be a source of empowerment to billions of people, including the 1.7 billion unbanked adults in the world.
This move by Facebook has the ability to create a plethora of opportunities for tech companies, financial institutions, and users of the platform. Part from solving real world problems, the project can also influence the adoption of blockchain and cryptocurrency by other companies and businesses, and that will invariably push the agenda of making cryptocurrency a mainstream method of payment in different systems.