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Facebook and 27 companies join forces to create a new cryptocurrency. Bitcoin will have a competitor

Facebook will soon launch a project that it has been working on for the past several months. Libra is a new cryptocurrency that will allow you to send money or pay for purchases from the Facebook or WhatsApp application. In addition to Facebook, 27 technology giants from around the world worked on the idea.

Now the veil of secrecy has been quashed by Facebook itself. Mark Zuckerberg  in a long post on Facebook revealed the details of the new cryptocurrency . The libra.org website is already running , where you can learn more about Libra.

The Libra project consists of 28 giants

Facebook  is not working alone. The company created a not-for-profit organization in which apart from Facebook alone, there were as many as 27 global giants. Among them are well-known companies from the telecommunications, e-commerce and service industries, such as Vodafone, eBay, Spotify, Uber and Lyft.

What is important, Facebook also has support from global companies operating in the financial world. The project was joined by, among others two of the largest payment card issuers, MasterCard, Visa, PayPal, PayU and several others. The full list can be seen on the graphics below published by the organization.

The list, however, is still open. Facebook has announced that it will gladly host more companies for the organization so that 100 companies and organizations from around the world are involved in the project. Each one has to act on an equal basis, have the same privileges and responsibilities.

Libra will be a safe currency based on the dollar

What today strongly discourages people from using cryptocurrencies is the huge fluctuations in rates. The bitcoin example is perfect. One day, your bitcoin(s) in the wallet could be worth a little, for several months to increase their value multiple times.

Facebook and partners want to remedy this. According to Mashable , Libra is to be based on a completely new blockchain technology (a block chain for storing transaction information). It will also be a currency and a contractual platform, however, more centralized.

Importantly, the value of Libra cryptocurrency will be based on monetary reserves in US dollars, but its value will not be linked to the dollar (or any other currency). Thanks to hedging, Libra should not, however, undergo daily exchange rate fluctuations of more than 10%.

Start Libra in 2020

The goal is of course to attract as many users as possible. Libra reports that there are currently 1.7 billion people in the world who do not use the services offered by banks. It is in them Facebook and partners see future users.

Operating with Libra will not require you to open a bank account and it will be very easy, safe and cheap. Facebook hopes that the cryptocurrency will quickly find its supporters who will help in its adoption among subsequent Internet users. The crypto is to start operating next year. (2020)

Calibra will be the first wallet from Facebook

Along with the new cryptocurrency Libra , Calibra will also Launch. This is a virtual wallet that will be created by Facebook and will be developed exclusively by the company. A completely separate smartphone app will be released , which will allow for smooth and (almost) instant transfer of funds between users from different parts of the globe.

 

Facebook also declares that payments for the new cryptocurrency will be very secure. Transactions are to be verified to prevent fraud.

We will use the same verification and anti-fraud processes that are used by banks and will have automated systems that will constantly monitor activity to detect and prevent dishonest behavior

– declares in the Facebook message.

 And if someone gains access to your account and as a result you lose some of your Libra, we will offer you a refund

– adds Facebook.

This is especially important after the last scandals related to privacy. Facebook will have to make sure that users are not afraid to entrust to them not only additional information about themselves, but also money. Mark Zuckerberg declares, however, that the information and financial data about customers Calibra will never be used for targeting of advertising on the site.

It is worth mentioning that the Calibra functions will be available not only from the level of a separate application. They will also be integrated Messenger and WhatsApp. Such integration is even easier to transfer funds to friends.

If in fact Calibra turns out to be easy to use and safe, it can get a lot of fans. Especially that Facebook is used by over 1.5 billion people today, who will be able to have Calibra at hand.

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