The social media giant takes on the finance industry with Libra
Facebook’s currency, Libra, is nearing launch, and if the
plans bear fruit, it’s going to be the most disruptive thing
to come out of Silicon Valley for years.
Let’s start with what Libra isn’t. It’s not a cryptocurrency,
you won’t be able to mine coins, and it’s not an opportunity
for speculation or investment. It does use similar blockchain
tech to drive it (see box, p60), but it’s a closed system
designed for stability. It’s also designed to be fast,
something Bitcoin struggles with (it can barely manage
seven transactions a second; Libra will start at 1,000). It isn’t
a bank account either, something Facebook is keen to stress
for legal reasons, so you won’t be earning interest on your
account, or get credit.
Libra is a stable private blockchain digital currency, and
will be accessible through Facebookapplications.Itisnot
unlike a PayPal account in operation,butwithouta linkto
your bank account. Facebook hasdevelopeda subsidiary,
Calibra, to handle it. You will beabletostoreLibra‘coins’
(or whatever units of Libra are called;it’snotclearyet)on
the Calibra wallet application, whichlinksintoWhatsApp
and Messenger. Libra will also beavailablethroughGoogle
Play. Once an account is verifiedusinga government-issued
ID, you will be able to spend hardcashtobuyLibra,either
electronically or by handing overactualfoldingstuffatthe
planned participating outlets. Facebookisintalkswith
chains of convenience stores tomakecashinginandout
readily accessible.
You can then send your Libra‘coins’toanotherLibraNovember 2019 | |^59
Technology
Facebook Libra