Earlier today, Facebook finally revealed more details of its digital wallet and cryptocurrency. Named Libra, the cryptocurrency will launch next year and will be available though both Facebook Messenger and WhatsApp. In addition to these two apps, the currency will be available through a standalone app.
In its official announcement, Facebook pointed out that over half of the world’s adult population don’t have access to basic financial services such as banks. Moreover, it cited UNESCO to point out that migrants lose over $25 billion just in fees when they send money to their home country. In an attempt to provide easier financial services to people, the company is launching the cryptocurrency.
While there have been several independent cryptocurrencies at the moment such as Bitcoin, majority of the world’s population don’t have access to the required information or infrastructure to utilize the currency. However, thanks to Facebook’s existing userbase across multiple platform, the social networking giant believes that it will be able to offer better accessibility through Libra.
Although this means a large number of people will start using Libra immediately, it also underlines the possible risk they might face. Facebook has been constantly in news over last couple of years due to its platforms’ lack of privacy. However, the company has said that the currency will come with strong protection to keep users’ payment information secure.
The company wrote, “We’ll also take steps to protect your privacy. Aside from limited cases, Calibra will not share account information or financial data with Facebook or any third party without customer consent. This means Calibra customers’ account information and financial data will not be used to improve ad targeting on the Facebook family of products. 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.”
While the revelation is certainly welcome, it will be interesting to see if Facebook manages to reestablish its credibility in near future before launching the cryptocurrency later next year. Just few days earlier, the company claimed that its users don’t expect privacy over the platform.
As for the upcoming service, company said that it expects Libra will make it easier to everyone to send money around the world without much problem. This will result in easy payment solutions for both individuals and businesses which don’t necessarily have the accessibility to different options.