JUNE 18, 2019 – Facebook [FB] released additional details regarding its cryptocurrency, Libra. The social media giant announced the formation of Calibra, a Facebook-owned subsidiary that will be responsible for the cryptocurrency and related financial services. Libra is set for release in 2020.
The company will be releasing several applications relating to Libra. First, Calibra will launch a digital wallet for storing Libra. The wallet will be accessible through WhatsApp, Facebook Messenger, and a stand-alone app.
Facebook’s Libra: How it Works
Unlike Bitcoin, Litecoin, and other popular cryptocurrencies; Libra will be a stable coin. Its value will be tied directly to a fiat currency (like USD or EUR) so it won’t exhibit wild price fluctuations like other popular crypto assets.
Facebook envisions Libra as an equalizer that will make financial services accessible to anyone with a smartphone. The firm boasts that sending money with Libra is as easy as sending text message.
In a press release this morning, Facebook said they hope to expand the use of Libra in the future.
“we hope to offer additional services for people and businesses, like paying bills with the push of a button, buying a cup of coffee with the scan of a code or riding your local public transit without needing to carry cash or a metro pass.”
The company also previewed the Calibra smartphone app.
Facebook also described the application’s security and other features in detail. Click here to read the complete Libra press release from Facebook.
Will Libra Succeed?
There is a lot of controversy over Facebook’s new crypto. Many people are citing concerns over Facebook’s privacy record as a reason for avoiding the cryptocurrency. However, the vast majority of the public is crypto illiterate, and Facebook will have to educate them to get them on board. However, if any company has the means and resources to bring crypto mainstream, it’s Facebook.
Ultimately, the success or failure of Libra will depend on the public’s willingness to adopt the cryptocurrency. Once people understand the technology better, they will be more likely to see the benefits of using technology. Additionally, Facebook will likely encourage the use of crypto by offering discounts and other incentives to Libra users to encourage adoption.
Using crypto can be intimidating for the layperson but, at its core, it’s quite simple. If Libra brings over new users into the crypto space, it could be a macro catalyst for the entire blockchain industry. Facebook could be blazing a trail that will eventually lead to the full-scale adoption of crypto, and it’s not outlandish to think so.
Facebook is one of only a handful of companies that have the exposure necessary to make it happen. With 2.38 billion active users across the world, that’s a whole lot of Libra.
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DISCLOSURE: Author Chris Dios owns shares of Facebook [FB].