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Facebook announces Libra cryptocurrency and Calibra digital wallet, will arrive next year

By midian182 · 11 replies
Jun 18, 2019
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  1. Facebook said it is forming a new subsidiary called Calibra, which aims to "provide financial services that will enable people to access and participate in the Libra network.” The first product to come from the company will be a digital wallet for Libra, the new global currency powered by blockchain technology.

    Last week brought reports that the crypto is being supported by big-name backers including Visa, Mastercard, PayPal, and Uber Technologies. Facebook has confirmed that the wallet will be available in Messenger, WhatsApp and as a standalone app, with 2020 the expected launch date.

    Facebook hopes Calibra will help those people for whom even the most basic financial services are inaccessible. "Almost half of the adults in the world don't have an active bank account, and those numbers are worse in developing countries and even worse for women," the company writes. "The cost of that exclusion is high -- for example, approximately 70 percent of small businesses in developing countries lack access to credit, and $25 billion is lost by migrants every year through remittance fees."

    Facebook says Calibra will let you send Libra to anyone with a smartphone at low to no cost. Eventually, extra services will be introduced, such as using it to pay bills, ordering food by scanning a code, and riding public transport without the need for cash or travel passes. The aim is for Libra to eventually be used to buy anything.

    Unlike a crypto such as Bitcoin, Libra is a stablecoin backed by real-world assets, meaning holders have “high degree of assurance” that they can convert coins into traditional currency based on an exchange rate.

    Reuters writes that Libra will be bought by linking a bank account or, for those without access to banking, from physical locations like cash transfer businesses and convenience stores.

    With Facebook’s questionable reputation for respecting people's privacy, getting people to trust in Calibra/Libra might not be easy, but the firm says it will not use the data for ad targeting, and user data will only be shared with Facebook and third parties when it has customer consent, or when law enforcement requests it.

    Renewed optimism in cryptocurrency has seen Bitcoin’s price surge past $9,000 for the first time in 13 months.

    Masthead credit: justplay1412 via Shutterstock

    Permalink to story.

  2. trparky

    trparky TS Evangelist Posts: 534   +428

    Welcome to the dystopian future where if you don't agree with your overlords (for instance, you're a Conservative) they can cut off your ability to pay for things.

    I think this was talked about in the Book of Revelations.
    thews86 and tkabou like this.
  3. Uncle Al

    Uncle Al TS Evangelist Posts: 5,390   +3,779

    Yum yum .... fake currency for fakebook ..... a marriage made in heven!
    tkabou likes this.
  4. ckm88

    ckm88 TS Addict Posts: 166   +119

    Yeeeeeeah, nope. Steer clear of Facebook and it's "products".
    trparky likes this.
  5. DawidCyron

    DawidCyron TS Rookie

    Facebook is not creating a cryptocurrency. Cryptocurrencies are decentralized, this isn't. Also, I hate the whole idea of it. Facebook is already everywhere, now they get even more data. They keep saying how they don't have a monopoly for social media when they do, but at that speed they will dominate more and more industries, which is awful. The problem with Facebook is, there is no way to replace it now. It just got too big.
    thews86 likes this.
  6. thews86

    thews86 TS Booster Posts: 42   +42

    I agree with you, this defeats the whole purpose of having a cryptocurrency. In my mind, cryptocurrency is a way to be in control of your money without tyrannical governments or corporations interfering with your life. If someone controls your economics, they control every aspect of your life. Don't trust Facebook.
  7. Comanche

    Comanche TS Enthusiast Posts: 49   +39

    we are maybe a decade away to the Book of Revelations
    trparky likes this.
  8. QuantumPhysics

    QuantumPhysics TS Evangelist Posts: 1,240   +901

    For those who didn't learn their lesson two years ago.
  9. HyPeroxya

    HyPeroxya TS Enthusiast Posts: 86   +10

    Like Western Union... but cheaper ..and more Ambitious. This will be the ONLY currency allowed in FaceVille, On Mars.
  10. ThrakazogZ

    ThrakazogZ TS Member Posts: 19   +22

    I also agree. I would go so far as to compare this to the currency you buy in video games, under the control of the company that sells it.
    thews86 likes this.
  11. thews86

    thews86 TS Booster Posts: 42   +42

    Facebook said the wallet for Libra will be available on Facebook Messenger and Whatsapp, which means the asset will be tied to your profile and all of your information. It sounds like Libra will be proprietary to Facebook and its platforms, meaning you wont be able to trade it on any exchanges, locking you in to their services. I am willing to bet 20,000 XRP that Facebook will make you agree to a 500 page TOS, meaning you aren't in full control of your money.

    Libra will not be decentralized, there will be no miners, nobody but Facebook will run the show. If Zuckerberg decides to shut things down in two years, Libra will no longer exist. Nobody can decide such a thing with Bitcoin or Ethereum. Since the asset is centralized, Facebook thinks they should charge outrageous fees for transactions, because they can (4.69%), the heaviest fees in cryptocurrency history.

    This really isn't a ''cryptocurrency'', Zuckerberg is essentially trying to become a world bank in disguise. Do yourself a favor, and stay away. Sorry for anything that might have been repeated, I just felt like getting this out.
  12. ghostf1re

    ghostf1re TS Guru Posts: 414   +265

    If you trust Facebook with any degree of your finances, you're a fool. Plain and simple. Facebook has done nothing more than make your personal information insecure. How many scandals does Facebook need before people stop trusting them?

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