Facebook has finally published the white paper of its new cryptocurrency. Many rumors that have surfaced in recent times seem to be largely true, including the establishment of the Libra Association and a special fund to guarantee the value of the stable coin. The white paper explicitly states that the ‘ unbanked’ also have access to the cryptocurrency and thus financial services.
Facebook has reportedly been working on the stable coin since 2017. It wants to reach all corners of the globe with the stable coin, and therefore also the unbanked, or people without access to banking services. This is the first sentence of the white paper:
Libra’s mission is to realize a simple global currency and financial infrastructure that offers billions of people more opportunities.
Facebook also announced that it will found a new subsidiary: Calibra. This company will develop financial products based on Libra. The first product is already known. It will release a simple cryptocurrency wallet that can be used on both Android and iOS. With the wallet, Libra can be saved and sent to other users, while the balance is shown in the local currency.
Reaching people in developing countries who don’t have access to banking services is a big part of Facebook’s mission. You can read on the Calibra website:
For many people around the world, even basic financial services are still out of reach: nearly half of the world’s adults have no active bank accounts, and those numbers are worse in developing countries and worse for women. The costs of exclusion are high – for example, about 70 percent of small businesses in developing countries have no access to credit, and $ 25 billion is lost annually by migrants through transfer fees.
It is therefore not surprising that a number of civil society organizations are part of the ‘Libra Association’. This association oversees the development of the ecosystem and the cryptocurrency itself. Other members of the association, as the rumors already suggested, are Uber, PayPal, Visa and Mastercard.