Facebook is launching a new cryptocurrency named “Libra,” which will become the official digital currency of the social media giant. To manage this new cryptocurrency, Facebook has created a subsidiary called Calibra, which will oversee users’ wallets and transactions. Moreover, a non-profit organization called the “Libra Association” will be formed to include companies that have already backed the coin’s launch.
Following the official announcement, many people are curious about how Libra will be utilized by the average Facebook user and its intended purposes. Facebook has been secretly developing Libra for over a year and has garnered support from notable companies like MasterCard, Visa, PayPal, Uber, and Spotify. The primary aim of Libra, as stated by Facebook, is to offer affordable and easily accessible financial services to around 1.7 billion individuals worldwide who do not have traditional bank accounts. This initiative is particularly crucial as a significant portion of the global population lacks access to banking services, while Facebook is widely accessible to anyone with an internet-enabled device.
While specific details are yet to be fully disclosed, it is known that Libra will be available within Facebook’s core app, as well as on Facebook Messenger and WhatsApp. Users will require a valid government ID to create a wallet, and they will be able to convert their local currency into Libra. Although the full spectrum of potential uses for the coin is not entirely clear, some indications suggest that Libra could be employed for personal fund transfers. Companies like Uber, which have endorsed Libra, might also integrate the digital currency into their own operations.
