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EFE and Bloomberg.
Companies such as Visa, Mastercard, Spotify and Uber are part of the consortium that will manage the currency.
The amount of Balance outstanding will be determined solely by market demand.AFP.
Facebook and 27 other organizations have officially announced today the creation of a new cryptocurrency, Balance, usable both for transactions between individuals and for purchases in institutions, and will be integrated with WhatsApp and Messenger from 2020.
"The idea is to make financial transactions as simple as possible for all the people of the world, wherever they live and whether or not they have a bank account," sources said. 39; Efe. Facebook, main driver of Libra, which is based like the rest of the crypto-currencies in a blockchain technology.
Cryptocurrency is the culmination of a one-year effort to design a simple way for Facebook users to send and receive money via their services. messaging. It will not depend directly on Mark Zuckerberg's company, but will be managed by a consortium of companies grouped under the Association Balance headquartered in Geneva (Switzerland).
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These companies, which receive the title of "founding members" within the badociation, include, in addition to Facebook, Visa, Mastercard, Vodafone, PayPal, eBay, Spotify, Uber, Lyft, Booking Holdings (owner of Booking.com, Priceline.com and Kayak.com) and the Argentinean Mercado Libre e-commerce company, among others.
"For a world currency to succeed, it can not be controlled by a single entity let alone by a commercial entity, such as Facebook." Society will have a voice in the badociation like all other members, no more and no less, "they said. Efe of the social network.
To complete the integration of cryptocurrency in its services, the company Menlo Park (California, USA) will create a financial subsidiary, Calibra, which will depend entirely on Facebook and to which the rest of the founding members of the badociation will not participate.
The first product of Calibra will be a digital wallet for Libra crypto-currencies initially available from WhatsApp and Messenger (both owned by Facebook), although company sources have explained to Efe that plans should be extended in the future. other services such as Instagram or the Facebook portal itself. The portfolio will also have its independent application for Android and iOS operating systems.
Given the large number of privacy and user data scandals that have plagued the company in recent months, it took a lot of effort to get Calibra will not share account information or financial data with Facebook or with third parties "without the customer's consent".
For example, according to the company, transactions made using Calibra will not influence, for example, ads that will appear to the user later on the social network, unless the user has access to them. expressly given the authorization.
Yes, the financial data will be shared with third parties, however, for the following purposes: to respect the law of each country, to protect the accounts of the customers before possible fraudauthorize the processing of payments and avoid delinquent activities.
Unlike the most popular cryptocurrency currently on the market, Bitcoin, Libra will be supported by a badet basket it will have a reserve composed of bank deposits and sovereign debt from several countries that will allow them to fix their value and reduce volatility.
"Bitcoin is very volatile, which makes it perfect for people who want to use it as an investment badet, but we want a low-volatility currency that people can use on a daily basis," he said. they emphasized. Efe from Facebook.
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The idea is that when they receive a balance payment, users can decide whether to keep the value in digital currency or change it. national currency according to the corresponding conversion and transfer it to a local bank.
Despite the de facto exercise "Central bank" cryptocurrency, the sources consulted badured that the Association for Libra "would not define monetary policy", but that the amount of the Balance in circulation will be determined exclusively by the demand that exists on the market.
To invent new crypto-currencies in case the demand increases, there will be "authorized dealers" of the badociation who will have to deposit in the reserve an equivalent value in other currencies at the quantity that they have. they wish to "print", and the reverse process will take place in case the parts are removed from circulation.
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