The coin, “Libra,” will be the new official cryptocurrency of Facebook.
Facebook has set up a new company, Calibra, in order to manage the new crypto. Calibra will handle users’ wallets and crypto dealings. Furthermore, a non-profit “Libra Association” will be established for the companies that have already supported the coin’s launch.
Now that it’s official, many are wondering what Libra will look like to the average Facebook user, and what the coin will be used for. Facebook has been working on Libra behind the scenes for more than a year, and the coin already has some serious backing. MasterCard, Visa, PayPal, Uber, and Spotify are among the big names backing the social network’s new crypto. Facebook’s stated goals for Libra are providing cheap and accessible financial services for 1.7 billion people around the world who don’t have bank accounts. Indeed, there is plenty of overlap here; in many countries, many people lack access to banking services, but Facebook is accessible to anyone with a device and an internet connection.
The details will likely come out slowly, but we do know that Libra will be accessible from Facebook’s flagship app, as well as Facebook Messenger and WhatsApp. You’ll need a government-issued ID in order to set the wallet up, and you’ll be able to convert your fiat currency into Libra. We don’t know every use the coin will have, but there have been hints suggesting that the coin will be used for individual money transfers, and companies such as Uber that have thrown their weight behind Libra may integrate the coin into their own systems.