How Can Libra Bring Payments to the Facebook Network
General - August 25, 2020
Facebook wants to integrate payments by launching its cryptocurrency. This cryptocurrency is called Libra. It was proposed to be stored in the Calibra wallet. Calibra was later renamed Novi. In this video, we break down how Facebook intends to bring payments to its network through Libra.
In 2019, Facebook announced Libra, its digital currency project. This digital currency would work across all Facebook products including What’s App and Instagram. Facebook said Libra was the tool to bank the unbanked and underbanked of the world.
Libra was supposed to be backed by currencies of five countries – the US dollar, the UK pound sterling, the EU’s euro, the Singaporean dollar, and the Japanese yen. In addition, other government assets would be put in the reserve. This was done to maintain stability of Libra.
Facebook formed a consortium of over 20 companies that would oversee Libra. The initial list of companies included Visa, Mastercard, Stripe, PayPal, Uber, Vodafone, Spotify and more. However, many left the consortium after government backlash. The social media company would be an equal member of this consortium but would control the wallet in which Libra was stored, Calibra.
The Libra was proposed to work is similar to a stablecoin. A programmble digital currency backed by real world assets used for digital payments. This would allow a social media to control a network for world payments.
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