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Libra: Facebook’s new digital coin to begin global revolution?

What is Libra?

Facebook, finally released information about its much-talked about cryptocurrency recently. Libra is going to be launched next year and the users will be able to access the cryptocurrency through apps like WhatsApp, Messenger to pay for commodities as well as send money to one-another. Libra is mainly aimed for people who don’t have access to a bank account.

Calibra: Facebook’s New Subsidiary

Calibra is a freshly formed subsidiary of the social media giant that is going to offer financial services. The participation and accessing of Libra network is also going to be through Calibra. As its first product, the subsidiary is going to launch a digital wallet for the stablecoin, Libra. The wallet (rumored to be launched in 2020) is going to work as an add-on Facebook messaging apps — WhatsApp and Messenger (iOS and Android) and with a standalone app (to be introduced later).

How will Calibra work?

When the user’s sign up on the platform for the first time, they will be asked to submit government approved KYC documents for verification. The company will do the due diligence to cross-check information and report suspicious activities to the authorities. The process will be similar to the one which is currently being conducted by banks and credit card companies.

Libra and Bitcoin — The Difference

While both are said to be digital coins, Libra and Bitcoin are way different from each other. Bitcoin is developed by unknown entities while Libra is being designed and developed by Facebook. Bitcoin works on a decentralized network which is permissionless and censorship-resistant whereas Libra is going to be operated by a consortium of MNCs. These very well-known faces behind the consortium can be held accountable and targeted with regulation.