Facebook is branching to cryptocurrency, releasing a new block-based call called Libra that can challenge bit coin Libra will be controlled by a nonprofit that will share responsibilities with Facebook, from MasterCard, and PayPal to Uber, and eBay
Facebook has a very low commission on Libra, and people who use the app will simply send a text message and pay a lot of money, Facebook says
Facebook is also promoting new digital currencies as a service for 1.7 billion adults around the world, according to estimates by the World Bank, which has no access to bank accounts, and can be especially beneficial to women and people in developing countries
“People around the world pay less for financial services,” Libra sites point to the burden of paying a steep fee and payday loans paying high interest rates
“About 70 percent of small businesses in developing countries have no access to credit, and $ 25 billion annually is lost by immigrants as a transfer fee,” Facebook says
The World Bank recently identified financial inclusion as a key driver of development in its report on global financial services. According to the report, as the mobile money service in Kenya expanded, women-led households could increase their savings by more than a fifth, and 185,000 women could leave the country to develop business and retail activities, contributing to women’s poverty reduction About 22 percent of the total, “he said.
Facebook is creating a new subsidiary to develop a digital wallet that will divide and librate when calls are released. In addition to its own applications, Wallet is configured with Facebook mobile products, including WhatsApp and Messenger.
“This move has created a global digital payment industry and Facebook,” said Weatherton, a huge social network in China, which already has a digital wallet, “said NPR’s Aarti Shahani. did. There is Paytm in India and M-Pesa in Kenya. In many countries called emerging markets, citizens have not built bank accounts but have implemented this technology early because they have mobile phones. “
“Most Facebook users are overseas and the largest user is India,” Shahani said.
In order to build currency confidence, each libra coin will be supported by a “financial asset” reserve in accordance with the new banking website. This is starting from bit coins and other virtual currencies where values can fluctuate wildly.
Facebook also faced another hurdle in the trust department. Critics say they already have too much power and are not enough to protect the user’s privacy. Last year, US regulators said they were investigating possible misuse of personal information belonging to 50 million Facebook users. Earlier this year, British lawmakers said the company acted like a “digital gangster”.
To address potential security issues with the new cryptocurrency venture, Facebook said, “Account information and financial data for Calibra customers are not used to improve the ad targeting of Facebook products.”
“Limited” only Calibra shares account or financial data with Facebook or third parties without customer consent. This includes cases where data can be “shared” in the need to keep people safe, comply with laws, and provide basic functionality to people using Calibra. “
The early founder of Libra includes more than 20 well-known companies who wish to expand their acceptance of new currencies. They will also maintain a server that will strive to maintain a stable value and each founder will be a node of the Libra block chain network to validate the transaction.
Each venture company pays at least $ 10 million in reserve currency. Like all Libra founding members, Facebook gets only one vote from the steering committee. If the new currency is successful, start-up companies and other initial investors will stand to earn interest in the Libra reserve.