Facebook plans to launch its first digital wallet in 2020, creating a comprehensive platform for safe financial transactions across the global e-commerce market.
Facebook’s new subsidiary Calibra, aims to provide financial services on top of the existing Libra network. Calibra’s first product will be launched as a digital wallet that stores the Libra Cryptocurrency. It is connected to the Libra’s Blockchain system and will be available for installation in both Messenger and WhatsApp. Facebook will launch Calibra sometime in 2020 along with a standalone app. Mark Zuckerberg assured that this app would make sending money will be made as easy as sharing a photo, in F8 Conference conducted in April 2019.
Calibra is marketed with the tagline “bank the unbanked” hoping that the service can bridge the gap for billions of people who do not have access to the conventional banking system. The vision behind this new venture is to leverage a permitted reliable Blockchain based network focused at enabling low-cost payments. It promises faster cross-border transactions, including remittances.
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The Libra Association is not the same entity as Calibra and Facebook. The focus of this project is “privacy.” Calibra has confirmed that it will not share account information or any financial data with any third parties or Facebook. In “limited special cases,” sharing information would be done only with prior written consent from the user. These limited cases could include AML, regulatory compliance, performance data, or to prevent any financial fraud. Calibra intends to perform AML/CFT regardless of the local government pressing on AML law compulsion to crypto wallets. With strict fraud protection policies coming in, Calibra will require ID verification and KYC approved to gain access to the wallet. For clarity, Calibra will release a comprehensive data policy before launch.
This newly formed currency “Libra” has been backed by leading financial and technology venture capital organizations like Mastercard, Paypal, Uber, and Andreessen Horowitz. Libra will be supervised and governed by the Libra Association, formed to promote the adoption of the currency. Each founder company will have an equal say and single vote for decision making.
Facebook is still in the primary stages of this effort, addressing privacy concerns. It is a commendable decision that user data will not be used in any way to market any other Facebook platforms. Facebook is positive about moving into the Cryptocurrency market, hoping that it will hugely impact its revenue.