It is no secret that Facebook was working on its own cryptocurrency which is named as Libra. So, today Facebook has finally unveiled Libra which could change Facebook’s future. It’s the next big thing coming from Facebook which will open doors for the wallet to Facebook Messenger and WhatsApp. But, everything new pops up, it always raises questions about its future. So, here’s everything answered.
Facebook’s new Libra cryptocurrency rises question about the future of Facebook itself and about the global banking. And you know what I personally think is that its a major involvement of Facebook up until now in global banking. Up until today, the platform was connecting the world together. Now, in the upcoming short span of time, billions of users will be able to send and receive cryptocurrency over this platform. Sounds exciting. Isn’t it?
Calibra: A Digital Bank
Calibra. It’s a new subsidiary of the Facebook company. Calibra is a standard payment company. And in partnership with Facebook, Calibra will build financial services networks and software which will work over Facebook’s own Libra blockchain. I know… I know you might be thinking about how they will come up. Look, everything is supposed to be done internally. Calibra now in tight integration with Facebook. If the results will be well, it could be Facebook’s next big thing.
Facebook will generate its own cryptocurrency with the help of Calibra to circulate in the market. Surprisingly Facebook doesn’t want the money to be controlled by itself. And this is how Facebook intends to make money off Libra.
I can make everything simple to understand. So, basically, we can call Calibra a digital bank. Now, let’s guess you are an account owner. You can take a money loan from Facebook, you can withdraw money, you can deposit money, and you can also transfer them (if you think you are so rich). Now, to understand chain, replace money word with the Libra.
It appears Facebook want a system to be a coin-based that users use to exchange money. An integration with Calibra, Facebook could be the first company to launch a cryptocurrency wallet that millions of people will have access. And I am sure, Facebook’s massive eco-system will help it which includes WhatsApp, Facebook Messenger, and Instagram.
Of course, Facebook is the first choice while WhatsApp could be the second major source to gain a user base. A vice president of Calibra, Kevin Weil claims that an integrated wallet feature will come to the Facebook Messenger and WhatsApp. However, the users who don’t use Facebook Messenger or WhatsApp can access to their wallet via Calibra standalone application which will be available in Google Play Store as well as Apple App Store.
“For us, WhatsApp and Messenger are great homes for Libra. A couple of billion people use them. But it’s not just that they use them, but how they use them. Messenger is to talk to close friends and family, and those are exactly the types of people you send money to. There’s a lot of overlap between the things you want out of a wallet for currency and the things you want out of a messaging app.” – Kevin Weil to the Verge.
Calibra in Action
Calibra in action is pretty simple to understand. Since we all have seen digital wallets and their method to work. A traditional digital wallet allows you to transfer money with the integration of the bank account or debit card.
Calibra on other hands converts the USD to LBR (Libra Coins). That means it will convert your money to cryptocurrency which can be sent easily to any of your contacts over the Calibra digital wallet. And once it is received by the recipient, it can be transferred into your bank account with as per the conversion rate.
Kevin Weil said that to sing up in Calibra, it will only require governement-issued ID. Then you can send or receive money after approval. Further, Facebook digital wallet commits they it won’t share transaction history or financial details with the third-party divisions. In simple words, your Facebook data will be kept a secret from Calibra. So, Calibra is just a medium to convert your money in Libra and send it to your contact.
- Facebook’s F8 Developer Conference: Here are Top 4 Announcements!
- Facebook will Pay You to Let it Spy on Your Smartphone
- Facebook Dating Gets New Secret Crush Feature; Available in 14 More Countries