Facebook releases Libra white paper
Facebook will offer stable coin on Libra Blockchain
Facebook has released its long-awaited Libra white paper. The document outlines the social media giant’s plans to offer a stable coin on its new Libra Blockchain. The coin will be tied to hard assets, including various fiat currencies such as the US dollar and the euro. Libra will also be open-source, allowing for developers to build on it.
Consumers who use Facebook’s Messenger service, WhatsApp or a stand-alone app will be able to access Libra through a digital wallet managed by new Facebook subsidiary – Calibra.
In their white paper the Libra Association announced that, “Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people,” describing Libra as a “decentralised, programmable database designed to support a low-volatility cryptocurrency that will have the ability to serve as an efficient medium of exchange for billions of people around the world.”
As part of efforts to achieve decentralisation, Facebook subsidiary Calibra will be a founding member of the non-profit Libra Association, which is headquartered in regulation-friendly Switzerland. Members will hold separate tokens allowing them on-chain voting rights. Calibra shares membership with a number of international businesses and organisations, including eBay, Visa, Mastercard, PayPal Holdings, Lyft, Spotify AB, Uber and Kiva.
It is expected that customers could begin making payments with Libra as early as next year, however adoption could be slow if the 2018 study by MagnifyMoney is anything to go by. When polled 91% of respondents claimed they wouldn’t trust Facebook to handle their payments.