Facebook, the largest social media giant in the world, has launched a blockchain-based digital currency (cryptocurrency) called Libra, Tuesday (18/6/2019).
This currency is predicted to be used by many people because it has been supported by dozens of world-class companies such as Mastercard, Visa, Stripe, Kiva, PayPal, Lyft, Uber and Women's World Banking. All these supporting companies, along with Facebook, are part of the Libra Association, which has control over making changes to Libra.
In addition, this currency is also believed to be safer and more profitable than other digital currencies. However, for use, users are required to install software or digital wallets.
The digital wallet for Libra is called Calibra, which Facebook created itself. Even though it was made by Facebook, any changes to the Libra currency data, as well as the process of "printing or burning" the Libra cryptocurrency must be done by the Libra Association, not Facebook itself, so it is certainly safer.
In addition, financial information on Calibra will be kept separate from social data on Facebook and will not be used to target advertisements, said Calibra vice president of products Kevin Weil.
Kevin Weil also said that this digital wallet will be connected to the user's bank account and credit card to facilitate transactions. With the Libra currency stored in Calibra, users will easily make online transactions from transfers to shopping.
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Calibra also has built-in fraud protection and password recovery, and there is a "know-your-customers" process, which requires the user to provide some form of identification according to government regulations.
"This is people's money; we feel a big responsibility to keep it safe," said Kevin Weil, as quoted by The Star Online, Tuesday (18/6/2019).
In addition to Kevin Weil, the Libra Association's head of policy and communications, Dante Disparte, also acknowledged the security of this digital wallet.
"This is not about trusting Facebook, it is effectively believing in the association's founding organizations that it is independent and democratic," he said.
Facebook CEO Mark Zuckerberg has even promised the efficiency of Calibra, which will be used in messaging applications such as Messenger and WhatsApp. The goal is clear to make transactions as easy as running short messages.
The large coverage of Facebook, Messenger and WhatsApp application users is also believed to facilitate the spread of the use of this currency. The head of the Calibra division David Marcus said it would be as easy to spread as using the internet, especially since there are currently many people in the world who do not have bank accounts, citing CNBC International.
Calibra's vice president of operations, Tomer Barel, also said the real-world currency used to buy Libra will go into reserves that support the digital money inside Calibra. In fact, their value will reflect the value of stable currencies such as the American dollar and the euro.
"We see this as complementing Facebook's mission to connect people wherever they are; that includes allowing them to exchange currency values," said Tomer.
"(The digital wallet) is backed by an asset reserve which ensures low utility and volatility," added Tomer.
"The numbers speak for themselves. There are 1.7 billion people worldwide who are unbanked, the same number not being served by financial services," said Marcus, who was before taking over Facebook's blockchain initiative.
"Now, anyone with a cheap smartphone has access to all the info they want in the world for free with a basic data plan. Why doesn't money work the same way?" added the former employee of Facebook's Messenger division and former president of PayPal
Source: www.cnbcindonesia.com
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