Cryptocurrency News Today: Facebook announces Libra cryptocurrency and Calibra digital wallet
Facebook has announced its cryptocurrency Libra and a global association of organizations that will govern it. The company also announced Calibra, a new subsidiary that will build a digital wallet for Messenger, WhatsApp, and a standalone app on iOS and Android.
The move, which has been expected for a while, represents a big endorsement for Cryptocurrency and the underlying technology of Blockchain, which is a secure, transparent, and decentralized digital ledger. Blockchain provides a trusted accounting system to enable Cryptocurrency transactions, and Facebook hopes to use it to empower billions of people to use a simple global currency.
But most people still don’t know what Cryptocurrency is, nor do they trust it as a currency. Facebook is stepping into the space to lend its legitimacy to the effort with its own Cryptocurrency, said Scott Carlson, head of Blockchain security at Kudelski Security, in an interview with VentureBeat.
And Facebook’s currency will be overseen by 28 organizations in a nonprofit Libra Association, based in Geneva, Switzerland. That group, which includes Facebook as a founding member, will ensure that the Cryptocurrency is legit. The Libra network that enables the Cryptocurrency will launch in 2020.
In anticipation of the rumored launch, Facebook’s stock rose 4.2% on Monday. The price of Bitcoin, meanwhile, has also been rising, hitting $9,154 today, or about half of its high point in December 2017.
Above: Calibra is a new Facebook subsidiary that will make a digital wallet.
Image Credit: Facebook
Trust is vital, Carlson said, because you will have to not only trust Facebook to keep your social data safe, you’re going to have to trust it to be hack-free. If someone hacks your account, they could steal your Cryptocurrency. That’s a somewhat common occurrence these days, so Facebook will have to be extremely disciplined to make sure it doesn’t happen.
This could be a tough sell for consumers, as Facebook acknowledged in April that it could face fines of up to $5 billion to settle a Federal Trade Commission inquiry into its data privacy practices.
On top of creating Libra, Facebook has formed a new subsidiary, dubbed Calibra, which will build financial services for Libra, starting with a digital wallet that will be available in Messenger, WhatsApp, and as a standalone app.
Facebook said Libra will be built on a secure, scalable, and reliable Blockchain and will be backed by a reserve of assets designed to give it intrinsic value. It will also be governed by the independent Libra Association, which was formed to manage and evolve this new ecosystem.
“Libra holds the potential to provide billions of people around the world with access to a more inclusive, more open financial ecosystem. We look forward to participating in the Libra network as a founding member, as well as through providing our community with access to Libra through Calibra,” said Calibra head David Marcus in a statement. “We know the journey is just beginning, but together we can achieve Libra’s mission to create a simple global