Facebook has revealed plans for a digital currency.
The social network Company announced the setting up of Calibra, a newly formed Facebook subsidiary whose goal “is to provide financial services that will let people access and participate in the Libra network.”
Libra will be the new global currency powered by blockchain technology. The wallet will be available in Messenger, WhatsApp and as a standalone app — and is expected to launch in 2020.
“For many people around the world, even basic financial services are still out of reach: almost 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.” says the Conpany, adding
”The cost of that exclusion is high — approximately 70% of small businesses in developing countries lack access to credit and $25 billion is lost by migrants every yearthrough remittance fees.
“This is the challenge we’re hoping to address with Calibra, a new digital wallet that you’ll be able to use to save, send and spend Libra.”
The currency will be linked with 28 partners including Mastercard, PayPal and Uber to form Libra Association, a Geneva-based entity governing the new digital coin, according to marketing materials and interviews with executives. No banks are yet part of the group.