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Facebook to Come Up with Global Cryptocurrency “Libra” in 2020, Powered by Blockchain Technology

The new digital wallet for Libra will be available in Facebook Messenger, WhatsApp and as a standalone app in 2020, the company said in a statement

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Facebook said it is still early in the process of developing Calibra and would consult experts to make the product safe and private. Pixabay

Amid intense calls to break it down as the company has grown too big, Facebook on Tuesday announced its own digital wallet subsidiary called “Calibra” for its global cryptocurrency “Libra” which would be powered by Blockchain technology.

The new digital wallet for Libra will be available in Facebook Messenger, WhatsApp and as a standalone app in 2020, the company said in a statement. Facebook currently generates 99 per cent of its revenue from advertisements and its own digital currency would help it reach billions of its users across products, creating another stable revenue stream.

“Today we’re sharing plans for Calibra, a newly-formed Facebook subsidiary whose goal is to provide financial services that will let people access and participate in the Libra network,” said Facebook. From the beginning, Calibra will let users send Libra to almost anyone with a smartphone, as easily and instantly as they send a text message and at low to no cost.

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Bitcoin Cryptocurrency. Pixabay

“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,” said the social media giant which is facing intense scrutiny over users’ privacy violations.

Facebook said Calibra will have strong protections in place to keep your money and your information safe. “We’ll be using all the same verification and anti-fraud processes that banks and credit cards use, and we’ll have automated systems that will proactively monitor activity to detect and prevent fraudulent behaviourm” explained the company.

It said it would also offer dedicated live support to help if a user loses the phone or password — and if someone fraudulently gains access to the account and the user loses some Libra as a result, Facebook would offer a “refund”.

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Facebook said Calibra will have strong protections in place to keep your money and your information safe. Pixabay

Aside from limited cases, Calibra will not share account information or financial data with Facebook or any third party without customer consent, claimed the company. “This means Calibra customers’ account information and financial data will not be used to improve ad targeting on the Facebook family of products.

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“The limited cases where this data may be shared reflect our need to keep people safe, comply with the law and provide basic functionality to the people who use Calibra. Calibra will use Facebook data to comply with the law, secure customers’ accounts, mitigate risk and prevent criminal activity,” the company explained.

Facebook said it is still early in the process of developing Calibra and would consult experts to make the product safe and private. (IANS)

Next Story

US Lawmakers Call Facebook’s Digital Coin Libra as ‘Delusional’

Under Facebook subsidiary Calibra, the social networking giant has planned to introduce a digital wallet for Libra. The wallet will be available on Messenger, WhatsApp and as a standalone app and is expected to be launched in 2020

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Facebook, Libra, Bitcoin
Bitcoin, which has risen in value for eight consecutive days, received a boost after Facebook has said it would offer its own cryptocurrency, the Libra coin by end of June 2020. Pixabay

The US lawmakers attacked Facebook’s upcoming digital cryptocurrency Libra at a Senate hearing here, calling it “delusional” and “dangerous” and directing the social networking giant to clean up its house first before launching a new business model.

David Marcus, Head of Facebook subsidiary Calibra, was grilled at the Senate Banking Committee on Tuesday, reports Tech Crunch.

Democrat Senator Sherrod Brown who began the hearing blasted Facebook, saying it was “delusional” to think people would trust it with their hard-earned money.

“We’d be crazy to give them a chance to let them experiment with people’s bank accounts,” said Brown, adding that “like a toddler who has gotten his hands on a book of matches, Facebook has burned down the house over and over and called every arson a learning experience.

Republican Senator Martha McSally echoed his views: “Instead of cleaning up your house, you are launching a new business model.”

Marcus said Facebook “will only build its own Calibra cryptocurrency wallet into Messenger and WhatsApp”.

Marcus told lawmakers that Libra – controlled by a non-profit called the Libra Association — will comply with all US regulations and unless all concerns are answered, would not be launched.

Earlier on Monday, US Treasury Secretary Steven Mnuchin said he was “uncomfortable” with Libra. US Federal Reserve Chair Jerome Powell has also raised “serious concern” over Libra.

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FILE – Representations of virtual currency are displayed in front of the Libra logo in this illustration picture. VOA

Marcus, in a prepared testimony, said the Libra Association would be regulated by the Swiss government because that’s where it’s headquartered.

“The Libra Association expects that it will be licensed, regulated, and subject to supervisory oversight. Because the Association is headquartered in Geneva, it will be supervised by the Swiss Financial Markets Supervisory Authority (FINMA),” Marcus wrote.

US President Donald Trump last week tweeted that he is not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.

“Unregulated Crypto Assets can facilitate unlawful behaviour, including drug trade and other illegal activity,” Trump said.

Also Read: New Twitter Desktop Look Left Users Baffled

“Similarly, Facebook Libra’s avirtual currency’ will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International.

“We have only one real currency in the USA, and it is stronger than evera It is called the United States Dollar!” he further tweeted.

Facebook has said it is not going to launch its digital coin Libra unless regulators are fully satisfied and all necessary approvals are in place.

Under Facebook subsidiary Calibra, the social networking giant has planned to introduce a digital wallet for Libra. The wallet will be available on Messenger, WhatsApp and as a standalone app and is expected to be launched in 2020. (IANS)