Facebook today announced its blockchain program, which the company said today that its developing global cryptocurrency, Libra will be launched next year and will support the underlying blockchain-based network. The currency is not a speculative asset like Bitcoin, but a form of digital currency backed by asset reserves. Facebook executives say that one day you can use Libra as payment for online and offline services.
Initially, Facebook intends to use Libra primarily to transfer funds between individuals who are unable to access traditional banks in developing countries. In the end, create the first truly mainstream cryptocurrency: a decentralized global payment form that is as stable as the US dollar, can be used to buy almost anything, and can support all financial products – from banks to loans to a more comprehensive currency Vision.
Facebook is building Libra’s architecture and plans to run the project by the end of the year, but eventually, it plans to hand it over to a larger community. The company formed a non-profit Libra association with 27 other partners to oversee its healthy operation and development. The partnership includes venture capital firms, non-profit organizations, encryption technology companies and large corporate finance, telecommunications, and technology service providers including Coinbase, Mastercard, Visa, eBay, PayPal, Stripe, Spotify, Uber, Lyft and Vodafone. These organizations will also contribute to the so-called Libra’s monetary margin, and Libra will ensure that each currency unit has intrinsic value support, rather than the simple scarcity of bitcoin.
If Libra succeeds, it could become one of the most important products released by Facebook, it can provide a compelling alternative to the existing banking system, especially for developing countries.