“Now people will be able to send, receive, spend, and secure their money, enabling a more inclusive global financial system.” Mentioned as a vision in the White Paper.
Facebook’s Geneva, Switzerland based registered company “Libra Networks LLC” hoping high and offering big promises to the people while creating its native cryptocurrency “Libra.” The proposed project would be decentralized and governed by an independent Libra Association. Libra, the global cryptocurrency would be built on a Libra blockchain, which is an open source platform and fully backed by the Libra reserve to give it intrinsic value, a basket of fiat currencies and other “undefined real assets.”
The white paper claims that “Libra’s mission is to enable a simple global currency and financial infrastructure that empower billions of people which can be easily used with confidence and convenience in their everyday lives.” The data also displays that “testnet is still under development, and APIs are subject to change.”
The “scalable, secure, and reliable” Libra Blockchain is proposed to be a decentralized and programmable database which is constructed to upkeep the low-volatility cryptocurrency and would become the medium of exchange. The founding members of the Libra Association would be responsible for the growth of the blockchain by running the validator node. Meaning, the network of validators would operate the Libra Blockchain. Once the network gets mature and more self-sustaining, “the Libra Association will work to gradually transition to a permissionless mode of operation.” The blockchain platform is an open source prototype implementation i.e., “Libra Core” so that it can be globally recognized.
The whitepaper also revealed the names of the leading firms who have invested and backing the project being “founding members.” The organizations would work together on finalizing the association’s charter upon its completion process. These firms are geographically distributed and have diverse businesses including non-profit and multilateral organizations, and academic institutions.
- Payments: Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa.
- Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, MercadoPago, Spotify AB, Uber Technologies, Inc.
- Telecommunications: Iliad, Vodafone Group.
- Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited.
- Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures.
- Nonprofit and multilateral organizations, and academic institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking.
In addition to the above list, Facebook is trying to get more institutions and members on board of the Libra Association. The numbers suggestively would be over 100 members to be achieved towards the target launch, which is expected in the first half of 2020.
Per the information, Facebook would be executed as the supreme leader throughout 2019, because the internal developers and team are working hard in the development of the Libra project. However, the final decision-making authority stays with the association, collectively.
Further, it is also clearly mentioned that after the launch of Libra network, both Facebook and its affiliate members, “will have the same commitments, privileges, and financial obligations as any other founding member, and in the governance of the association Facebook’s role would also be considered equal as one among others.”
Role Of Calibra
For the transaction process, Facebook created Calibra- a wallet for all the Libra coins that would require KYC to operate. According to the published data, Calibra is an independently regulated and centralized subsidiary of Libra Association. Calibra would perform the role of a separate entity in order to differentiate “between social and financial data and to build, and operate services on its behalf on top of the Libra network.”
Calibra would work as a standalone app, integrated into the WhatsApp and Messenger App to execute the process of peer to peer transaction on a regular mode. Now, with a basic data plan, billions of users can transact and together would drive economic empowerment in a decentralized model.
There are various corroborated news portals comparing Facebook’s Calibra to Kenya’s M-Pesa, which is inexplicably charging high, and these news portals are seeking high expectations from the upcoming launch towards the reasonable fee structure both for smaller and bigger transactions. However, the fee structure has not yet disclosed in the white paper but suggested to be economical.
Why did Facebook ask to Halt its Libra Project?
In a recent update, the Chair of House Financial Services Committee from the United States House, Rep. Maxine Waters requesting to halt on Facebook’s crypto project “Libra”. The information is posted through a tweet by Brian Fung, CNN Tech Reporter on June 18.
Chairwoman says that Facebook has already troubled in the past by using people’s data and broke the trust. She further expresses her thoughts by saying that Facebook must freeze any movement towards the development of its native cryptocurrency until “Congress and regulators have the opportunity to examine these issues and take action.”
However, it is not sure whether the regulators would take any further steps by understanding her suggestions to implement on Facebook and Project Libra.
KoinPost will further update on the upcoming implications related to the impending regulations on the Project Libra, and Facebook’s smart strategies to tackle the issues with the help of its strong backing by the lending institutions.
Tags: Facebook, Libra Project, Libra Cryptocurrency White Paper, Geneva, Switzerland, Regulations, Leading Institutions, Brian Fung, Rep. Maxine Waters, KYC, House Financial Services Committee, United States House, Halt Libra Project, Calibra, Libra Association, Libra Core, Decentralized Cryptocurrency, Global Financial System
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