Facebook Reveals Its Highly-Anticipated Cryptocurrency Libra
Facebook has revealed its highly anticipated cryptocurrency Libra. The white paper detailing the project was published on Tuesday, June 18, on the official website.
According to the white paper, the blockchain ecosystem for Libra will be launched in the first half of 2020, along with the company’s own crypto wallet Calibra.
The wallet will be available as both a standalone app for Android and iOS, as well as an integrated feature for the Facebook Messenger and the company’s other services.
To get access to the system, users will have to provide a government-issued ID and comply with the platform’s know your customer requirements.
The Libra blockchain will be operated by nodes represented by 27 major companies, such as Visa, Uber, MasterCard, eBay, PayPal, and others. According to TechCrunch, each of these firms invested at least $10 million in the project.
The cryptocurrency will be backed by the so-called Libra Reserve — a basket of assets, such as bank deposits and short-term government securities.
Facebook has previously been involved in a major data scandal with political consulting company Cambridge Analytica. The social media giant was then accused of customer data misuse, including selling sensitive personal information to third parties.
The Cambridge Analytica scandal is part of the reason why Mark Zukerberg singled out the issue of privacy in his Facebook post introducing Libra. In the post, the founder of Facebook reaffirmed that blockchain transactions will be private and the users' personal data will not be transferred to third parties.
Facebook is known for its controversial cryptocurrency advertisement policy, as in 2018 the company imposed a blanket ban on crypto ads, which was later relaxed. By the end of 2018 sources were already claiming that the company is working on its own cryptocurrency.