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Libra (LBR)
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    Facebook’s new cryptocurrency: Libra

    You won’t be required to have a Facebook account in order to use Libra, it was announced June 2019 by Facebook, the world’s largest social media platform. Although it is still early days, the Libra project will also include a new Facebook subsidiary Calibra as well as an independent consortium, Libra Associated and powered by some of technology’s leading brand powerhouses.  The Libra blockchain is due to be launched sometime in 2020, but it’s already turning heads for the right reasons.

    The information has already been trickling down the grapevine. It has been implied that wherever the Visa or MasterCard logos are accepted, Libra will also follow suit.

    Within Libra Association’s group of founding members, you will find PayPal, Visa, Mastercard, Lyft, Uber and Coinbase among many others.

    So how does it work, you might ask. Customers who are interested in transferring Facebook’s recently announced Libra token will be presented with a number of options.

    At the time of publication, Calibra is already developing financial services and high-end products around the Libra network, which eventually will be fully-governed by the Libra Association. Calibra’s main goals will be to immediately kick-start a digital wallet for the Libra coin, that will permit users to transfer funds to each other, and to store their Libra tokens locally.

    Customers will gain access to their wallet through a new app available on iOS and Android, or else via Facebook’s Messenger and Whatsapp.

    libra coin facebook crypto hand

    More access to more clients

    Since it will give access to a larger spectrum of clients, the idea behind Libra is to build a financial ecosystem that will ultimately empower more people.

    For both major tech companies as well as financial institutions that are backing this project, this will mean that they will earn access to more clients and for those who are struggling to access capital, it will provide them with a new lifeline.

    Backed by NGOs

    A good number of NGOs have also been involved in the Libra Association including Mercy Corps and Women’s World Banking. In order to become a “Social Impact Partner” contributing NGOs must have a five-year track record of poverty lessening work, including digital financial inclusion and an operating budget of greater than $50 million.

    Although Calibra will only target basic fund transfers at first, the main aim is to boost its services to let clients pay pills and to purchase goods or services eventually.

    Rebuilding the New PayPal

    Facebook saw both a golden opportunity as well as a risk to current transaction processes. Not only, will it dislocate the way transactions are administered by removing transaction fees most common with credit cards, but it will also heavily influence Facebook’s ad business model.

    Since there are 1,7 billion people who don’t currently own a bank account and might opt for a financial services alternative, Facebook wants to transform Libra into a bigger and better version of PayPal. With fewer fees and bigger access to a wider range of clients, it also aims to become more resourceful and long-lasting.

    Who can use Libra?

    Anyone who has access to Libra’s iOS or Android mobile app, as well as Facebook’s Messenger and Whatsapp, will have access to it.

    How will Libra work?

    Since Libra hasn’t been released and details are only slowly emerging, we won’t know in full until it’s actually launched. Calibra promises that it will be as easy to send money as sending a message or a photo.

    You will be able to send, add or withdraw money in a few clicks all by using the appropriate mobile apps, Messenger or Whatsapp.