Facebook presents timeline to introduce digital currency Libra
On June 18th 2019, Facebook announced the official launch of digital currency called Libra, by releasing the technical documentation, White Paper and the test-net for developers.
Libra website is live and offers the landing spot for questions related to Libra. Libra is announced by the Libra Association non-profit organisation based in Geneva, Switzerland, as a ‘global currency and financial infrastructure’ to improve the lives of billions of people that are still not connected to the banking and financial services (term often used is: Unbanked). Libra Association is established in order to provide the reserve for the currency, develop and overview the Libra blockchain. Founding member among others, are private companies: PayPal, Mastercard, Visa, Stripe, Uber, Vodafone, Spotify, eBay, Lyft, and a non-profit organisations: Kiva, Mercy Corps, Women’s World Banking.
Facebook is a part of the Libra Association trough its newly formed subsidiary Calibra. Calibra will develop the electronic wallets for the users to receive and spend Libra cryptocurrency. Facebook roles in a decision-making process will be equal as other members. Libra Association pledged to extend the membership to support the network.
In its whitepaper Libra is described as currency developed on a blockchain. This blockchain is private or permission based, so only selected players (nods) can use it, observe and verify transactions that it carries. Foundation suggest $10 million fee for companies to be selected as a nod in this network. Libra announced that they will start transition to open/permissionless blockchain within the next five years.
Libra is a ‘stablecoin’, cryptocurrency that is backed by the major fiat currencies. Libra announced to be backed by a basket of international fiat currencies, and offered on exchanges, thus users can be ‘confident the value of their coins today will be relatively stable across time’
Launching of test-net to introduce developers to the network is a starting phase in cryptocurrency launch. Full network will be live at the first half of 2020.