Welcome to the world of digitalization where paper currency is now being replaced by the cryptocurrency and Facebook has entered this arena of cryptocurrency. Facebook has recently launched its cryptocurrency named Libra that will allow the users to buy products online and transfer money with almost zero fees. The people can buy Libra cryptocurrency online or at local retailers and exchange points. Not only that, but people can also be able to use them online or in on-site stores. The cherry on top is that Libra is interoperable with other third-party wallet apps and can be spent via other wallets or Facebook’s Calibra wallet. The blockchain system will be launched publicly in the first half of 2020 and Calibra wallet will be incorporated into WhatsApp, Messenger, and Facebook’s own application.
Facebook will be launching a subsidiary company called Calibra that will handle all the crypto dealings, operations and users’ data protection to make sure that Libra payments are segregated from users’ Facebook data to avoid ad targeting. The Facebook claim of creating a global digital currency that will stimulate financial inclusion comes with extreme privacy and built-in data decentralization. Facebook is playing it smart by pulling the Libra payments into the online domain and is trying not to drive cash out of it instantly. It will be guaranteed the users’ real identity will not be linked with publicly visible transactions.
Facebook promised to be a game changer in the field of cryptocurrency by removing transaction fees whenever things are bought or sold online. This creates a very thin line between the users’ history of Libra transactions and Facebook’s ad business for the users. The transaction data can be monitored by any other competitor to learn what people buy and can provide rather better financial services corresponding to the user’s online identity.
Facebook aims to make Libra an advancement of PayPal and is trying to make it simpler and flexible with the following features:
- Easy set-up
- Convenient payment methods
- Lesser transaction fee
- Access to the unbanked
- Decentralized system
The users can get Libra in exchange for any local currency and can spend them similar to dollars with minimal transaction fees. The user’s real identity will not be linked to Libra and can cash it whenever required. Libra can be used through Facebook’s wallet Calibra and by third parties like PayPal. The basic motivation is to make money transaction as easy similar to sending a Facebook message with just one-click. Libra will be launched next year however; users can sign up for early information here