Calibra, the newly formed Facebook subsidiary has an audacious vision; to provide financial services that will let people access and participate in the financial system through Libra. The first product Calibra will introduce is a digital wallet for Libra, a new global currency powered by blockchain technology. As announced by Mark Zuckerberg, the wallet will be available in Messenger, WhatsApp and as a standalone app. It will launch in early 2020.
Facebook is leveraging on the over 7 billion people who use the app. They are contributing to financial inclusion through the introduction of Libra.
For many people around the world, even basic financial services are still out of reach: almost half of the adults in the world don’t have an active bank account and those numbers are worse in developing countries and even worse for women. The cost of that exclusion is high — approximately 70% of small businesses in developing countries lack access to credit. In addition, migrants lose $25 billion every year through remittance fees.
Calibra will be the new hub providing the total financial services and will be independent of Facebook. The new section of Facebook will not share account information or financial data with Facebook or any third party without customer consent. This means Libra customers’ account information and financial data will not be used to improve ad targeting on the Facebook family of products.
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Furthermore, Calibra is collaborating with other stakeholders to provide customers with a great experience. They will be consulting with a wide range of experts to make sure they deliver a product. One that is safe, private and easy to use for everyone. Looking at the history of privacy scandals of its parent company, Calibra’s lessons learnt will ensure customers’ data are paramount.
Calibra for Businesses
The first version of the Calibra platform will support peer-to-peer payments and a few other ways to pay such as QR codes which small merchants can use to accept payments in Libra. Over time there will be many others including in-store payments, integrations into Point-of-Sale systems, and more.