Facebooks announces Project Libra
Facebook has been on the continuous path for excessive growth since its initial launch. Tuesday, the social media conglomerate continued down the path of magnification as they revealed their plans to launch their own form of digital currency. Facebook refers to their cryptocurrency plan as “Project Libra,” an easy way to send, store and receive money all across the world.
What is the goal of Project Libra?
CNBC’s Julia Boorstin reported that Facebook said it aims to make the sending of money as simple as sending a picture.
While there is no set date for exactly when Project Libra will launch it is anticipated to be accessible sometime next year, 2020. Rumors of Facebooks inability to secure partnerships appear to be false.
As they have reportedly partnered with over two dozen businesses and nonprofit organizations in order to launch Libra as an “open source of currency.” These include but are not limited to Visa, Mastercard, Spotify, eBay, PayPal and Uber.
Calibra: The Digital Wallet
In addition to digital currency, Facebook also plans to launch a digital wallet system referred to as Calibra. Users will be able to operate and utilize the wallet within WhatsApp and messenger.
This system will provide users with the ability to both receive and send money, anywhere across the globe. This could be a potential game changer for companies that utilize messenger bots in their sales tactics.
The Calibra system plans to branch out in a way that can be optimized for maximum potential. Hopes to use Libra as a way to make payments for advertisements are in the works as are providing an array of financial services like loans or investment options
Facebook’s attempt to detour around traditional banking systems is an ambitious one, especially when considering the reputation, it has received over the years in regard to privacy and security.
However, the company does not seem to be phased by those details. Facebook is attempting to reassure those with insecurities surrounding Libra. Businessinsider reported that Facebook claims, they will not use Libra users, transaction data as a form to target advertisements
Bitcoin vs. Libra
Libra is based off of the same idea as Bitcoin, however, Facebooks Libra differs from its predecessor in one simple way. Libra will reportedly be backed up by real currency which will increase financial stability. The way it will work is each time Libra is purchased, that money will then go into a bank account that is to remain untouched. This means that the amount of currency that used to buy Libra will be the equivalent amount that goes into the account.
The future of digital currency
The world is continuously making Digital transformations and traditional systems are slowly beginning to fade. Facebooks Libra is a spin on the traditional banking systems. However as of now does not threaten the traditional banking system. It seems to be just another form of added convenience that will benefit some but not all.
On a personal level, speaking as someone who still has not opted in or taken advantage Apple Pay, Libra does not sound particularly tempting to me, in terms of my own individual use.
However, its potential in the advertising realm may be a game changer. If you are able to access Libra via messenger, you may potentially be able to buy a product straight through the messenger bot which is a convenient tool to have access to. Just how big of an impact will Libra have on the digital marketing world? Only time will tell.