Facebook has unveiled an ambitious plan to launch a new global digital currency and financial system.
The social media giant is at the forefront of an international consortium aiming to create a new open-source digital currency powered by blockchain technology.
The currency will be called Libra and is due to launch in 2020.
Libra Association
The consortium includes some of the world's largest financial services companies, including Visa, Paypal and Stripe, as well as tech giants like Ebay, Uber and Spotify.
Facebook will not profit directly from the currency - which will be run by a non-profit association with the support of the involved companies.
The Libra Association is aiming to attract 100 major companies before the official launch - with each one paying a €9m joining fee.
The new-currency's co-creator David Marcus said many of the world's most trusted central banks had already given it their "general cautious support."
"Libra holds the potential to provide billions of people around the world with access to a more inclusive, more open financial ecosystem," he said.
2/ Libra's mission is to enable a simple global currency and financial infrastructure that empowers billions of people.
— David Marcus (@davidmarcus) June 18, 2019
Calibra
This morning, the company shed some light on how it does plan to gain - announcing that it was creating a new subsidiary named Calibra, which will provide users with access to the currency.
The subsidiary's first product will be a 'digital wallet' which will allow users to store, exchange and spend the currency.
A "sneak peak" of what the Calibra app will look like. Image: FacebookThe wallet will be available in Messenger, WhatsApp and as a standalone app - and the company expects to launch in 2020.
The currency itself will be open source, meaning customers will also be able to access it using digital wallets from other companies.
2/ Libra's mission is to enable a simple global currency and financial infrastructure that empowers billions of people.
— David Marcus (@davidmarcus) June 18, 2019
Digital wallet
Facebook said users will be able to "send Libra to almost anyone with a smartphone, as easily and instantly as you might send a text message and at low to no cost."
"In time, 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," it said.
2/ Libra's mission is to enable a simple global currency and financial infrastructure that empowers billions of people.
— David Marcus (@davidmarcus) June 18, 2019
Privacy
The company has insisted that users' financial data will be kept entirely private - promising that Calibra "will not share account information or financial data with Facebook or any third party" without consent.
It said the data may be shared in "limited cases" where it is necessary to keep people safe, comply with the law, and provide basic functionality to the people who use Calibra."
Facebook said Calibra will use the same verification and anti-fraud protections as banks and credit cards to keep users' financial information safe.
It will also use automated systems to proactively monitor activity to detect and prevent fraud.
It has promised dedicated live support adding that if "someone fraudulently gains access to your account and you lose some Libra as a result, we’ll offer you a refund."
