Facebook presents timeline to introduce digital currency Libra
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.