Facebook announces Libra cryptocurrency and Calibra digital wallet, will arrive next year

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Skepticism of what might be described as "Facebank" is high.

His concern is that Libra may grow to replace traditional currencies.

A US regulatory source briefed on the matter said Facebook had been in communication with USA regulators but added it was still unclear how the currency would be structured and whether it would directly fall under any existing USA regulatory regimes. Unlike Bitcoin, the currency won't be speculative, but backed by real money reserves, assuring that Libra actually has an intrinsic financial value. That's a departure from bitcoin and other virtual currencies whose value can fluctuate wildly.

Libra Association debuted with 28 members including Mastercard, Visa, Stripe, Kiva, PayPal, Lyft, Uber and Women's World Banking. The goal, we understand, is to ramp that up to 100 partners by 2020, each paying a minimum of $10m to participate, with the money being spent on incentives for shoppers and sellers. In addition to governing the currency, the association will promote the open-source Libra Blockchain and "Move" programming language.

"If Facebook wants to create an instrument for transactions, why not?" Additionally, Calibra will make sure it doesn't share users' information with other apps without his or her knowledge, which becomes a must after all the data breaches Facebook has been a part of.

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"For many people around the world, even basic financial services are still out of reach: nearly half of the adults in the world don't have an active bank account and those numbers are worse in developing countries and even worse for women", Facebook continues.

Yes, Facebook really is promising privacy, "aside from limited cases". They hope it will not only power transactions between established consumers and businesses globally, but offer unbanked consumers access to financial services for the first time. While the Winklevoss twins famously sued Zuckerberg for allegedly stealing the idea for Facebook - and won a $65 million settlement - the duo told "CBS This Morning" that some level of cooperation would benefit the broader crypto market.

There is no guarantee, however, this arrangement will remain unchanged - Facebook's privacy policy has changed often over the years. And it will share data with third parties to process transactions.

Facebook Inc. - along with 27 partners - is wading into the world of cryptocurrencies with Libra, a digital token that's projected to be used in everything from commerce to money transfers. Furthermore, the social network company mentions that Calibra will use Facebook data to comply with the law, secure customers' accounts and prevent criminal activity. Calibra, the company behind the financial service, is meant to address this problem since it will allow those who don't have a bank account to save, send and spend Libra.

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