Facebook to launch its cryptocurrency “Libra” in 2020

Facebook on Tuesday announced the details of its widely-rumored cryptocurrency called Calibra.

Calibra is a “newly formed Facebook subsidiary” and its first product, launching in 2020, will be a digital wallet to store and send Libra, a new cryptocurrency. Calibra will be connected to Facebook's messaging platforms Messenger and WhatsApp, which already boast more than a billion users.

Calibra will enable users to send Libra to each other “as easily and instantly as you might send a text message, and at low to no cost.” Eventually, Facebook says, “we hope to offer additional services for people and businesses, such as paying bills with the push of a button, buying a cup of coffee with the scan of a code, or riding your local public transit without needing to carry cash or a metro pass.”

The name "Libra" was inspired by Roman weight measurements, the astrological sign for justice and the French word for freedom, said David Marcus, a former PayPal executive who heads the project for Facebook.

"Freedom, justice and money, which is exactly what we're trying to do here," he said.

Libra, the cryptocurrency, will run on its own Libra blockchain, which today launches an open-source testnet. The blockchain and cryptocurrency will all be overseen by the Libra Association, a not-for-profit that is separate from Facebook and headquartered in Geneva.

The Libra Association posted its announcement at the same time as Facebook’s Calibra announcement, and says it is targeting the first half of 2020 to launch the cryptocurrency.

Libra Association’s “founding members” include: Facebook; Coinbase; Visa; MasterCard; PayPal; Stripe; Uber; Lyft; eBay; and Spotify. Every founding member has committed to a minimum investment of $10 million, Libra Association says.

In an another document to its announcement, Calibra stresses repeatedly that it will prioritize security. Calibra will be a regulated entity, and will keep customers’ financial data separate from Facebook social data.

“Calibra will not share account information or financial data with Facebook, Inc or any third party without customer consent, one security guideline read. Calibra customers’ account information and financial data will not be used to improve ad targeting on the Facebook, Inc family of products,” it further said.