Libra is the new cryptocurrency of Facebook based on blockchain and with its own digital wallet

Libra is the new cryptocurrency of Facebook based on blockchain and with its own digital wallet
Libra is the new cryptocurrency of Facebook based on blockchain and with its own digital wallet

Facebook already has its digital currency to pay online. Libra is the name of the new digital currency based on Blockchain that will be supported by more than 100 large financial companies, including MasterCard, Visa or Paypal. But Libra is the base, the digital currency on which the rest of payment services will be based. Among them is Facebook, which will be called Calibra.

Calibra will be a digital wallet that will store and use the new digital currency Libra. That is, a payment platform for Facebook, Messenger and WhatsApp that will exist as a separate application on iOS and Android. A wallet connected to the whole world and multiplatform, a portfolio that will allow you to send money quickly and will be based on this new digital currency in which you already explain from the beginning that you will not be in the hands of Facebook.

This is how Calibra will work, the new Facebook payment platform based on Libra. A huge project that comes as a subsidiary company of Facebook and will operate independently. A company that will be the visible face of Facebook for the use of Libra, a currency designed to avoid falling into the same problems that the rest of the cryptocurrencies have had up to now.

What is Libra and who is behind

The Libra Association is an independent non-profit organization based in Switzerland. Among the founding members are payment companies such as Mastercard, Visa or Paypal, technology companies such as eBay, Lyft, Uber, Spotify or Facebook Calibra itself and also companies specialized in Blockchain such as Anchorage or Coinbase.

Libra is an open source currency based on Blockchain, like other cryptocurrencies like Bitcoin. For its development has been a group of engineers, among which are some members of Facebook.

Although the association is responsible for the final decision making of Libra, Facebook is expected to maintain a leadership role during 2019 to boost its use. Although once it is established, Facebook promises that it will have a role equivalent to that of the other companies that participate in Libra.

To combat volatility, Libra will be fully supported by the Libra Reserve, a collection of coins and other assets used as collateral for each Pound created.

What are the differences between Libra and Calibra

Libra is the digital currency, Calibra will be the Facebook portfolio. That is, Libra is the cryptocurrency that different companies will use and Calibra is the name that the Facebook payment platform will receive. The payment system where we can store, send and through which we can pay with the Libra currency.

Calibra has in fact been formalized also as a subsidiary company of Facebook that will act independently. And it is that among the founding members of the Libra Association, Calibra Facebook is registered, not Facebook as such.

When and where will Calibra be available?

Calibra is currently in development, but its arrival is expected by 2020. At the moment, the company has already activated a link to register. The Calibra payment platform will be available as a stand-alone application on Google Play and the App Store, and can be used directly on WhatsApp and Messenger applications. That is, Calibra will be responsible for allowing to send money through Facebook applications.

The first version of Calibra will allow payments between pairs and other transactions of this type, such as QR codes that small merchants can use to accept payments in Libra. Over time, others will be added, including in-store payments, point-of-sale system integrations and more.

What will be the cost of using Libra and Calibra?

Libra is a digital currency that will be available worldwide and like other cryptocurrencies, it can be used to make normal payments such as buying a coffee or paying for public transport. Through the Calibra digital wallet, we can also store Libras and therefore save money.

Every time you send or spend money through Calibra, what you will do is actually spend Libra. In spite of this, you can also convert local currencies into Libra and vice versa. By making these conversions, the Calibra application will show you the exchange rate so you know exactly how much money will be obtained.

The use of Calibra will not be free of commissions, although Facebook promises that they will be low and transparent. Especially when sending money abroad.

Calibra’s focus on the privacy of users

When Calibra is available, you will need to present an official identification document to register for the account. This is because being a legal currency, you want to avoid fraud and verify the real identity of people.

Facebook explains that “the activity of each transaction in Calibra will be private and will never be made public”. The privacy focus of consumer data is one of the aspects that has been more detailed:

Except in limited cases, Calibra will not share account information or financial data with Facebook, or with any third party without the client’s consent. For example, information and financial data will not be used to improve Facebook ads. Although, there will be some exceptions: fraud and crime prevention, compliance with the law, service providers and processing of payments and global data.

The description of these last two points does not offer such confidence.

“When a payment is authorized, we share the data necessary to process that transaction with third parties, we also share customer data from Calibra with managed or service providers (including Facebook, Inc.) that allow us to operate our company (eg, to provide technical infrastructure services or direct payment processing.) In both cases, we only share the Calibra customer data necessary to complete the provision of the defined service or activity. ”

“Calibra may share global data with Facebook, Inc. or third parties, related to the performance of its products and services, such as a graph showing the total number of users of the service.” Calibra will use techniques to prevent global data from being link with a person. “

Additionally, they explain that Calibra will use global Facebook data that is not linked to the Calibra account to improve the product.

Regarding the rest of Libra-based digital wallets, the level of privacy they could offer is unknown but they would be completely unlinked from Facebook.

Security and consumer protection

All Calibra accounts will be verified and the application will have protections against fraud. In addition, Calibra will have reporting tools and a customer service dedicated to the application. Additionally, in the event that an unauthorized transaction is made, we will receive a full refund.

Calibra will enforce international sanctions regimes and promises to comply with the sanctions programs of the US, the European Union and the UN.

Availability

Initially, Calibra will be available in selected countries, although availability will be expanded from 2020, the date of its launch. Although other companies are in the Libra Association, Calibra is expected to be the first digital wallet to be compatible with Libra.

More information | Pound

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Kamal Saini
Kamal S. has been Journalist and Writer for Business, Hardware and Gadgets at Revyuh.com since 2018. He deals with B2b, Funding, Blockchain, Law, IT security, privacy, surveillance, digital self-defense and network policy. As part of his studies of political science, sociology and law, he researched the impact of technology on human coexistence. Email: kamal (at) revyuh (dot) com

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