Facebook’s Libra and Calibra: Crypto in your pocket | TECH(feed)


Hey everyone welcome back to tech feed i’m
juliet beauchamp. Today, let’s talk crypto. As more big tech companies get in the cryptocurrency
game, we all may be paying with crypto sooner than you think. Stick around. All right–let’s first dive into facebook’s
newly announced cryptocurrency, libra. Yes, i am trying very hard not to make an
astrology joke. I’m a capricorn. Anyway, facebook announced libra earlier this
week. It’s a fiat-backed cryptocurrency, which
means it’s supported by real money–the value won’t fluctuate with supply and demand
like bitcoin. It wants to roll out libra, and its digital
wallet called ca-libra, in 2020. So how is facebook going to change the payment
landscape? Well for one, libra is backed by tons of powerful
financial and tech partners. Mastercard, visa, paypal, uber, spotify and,
notably, coinbase have signed on to help manage the new libra network. That means that facebook–amid all its privacy
scandals–won’t be in charge of processing your payments. And that also means facebook won’t have
access to users’ purchases, and the company can’t use your financial data to better
target ads. That seems pretty in-line with mark zuckerberg’s
new privacy-focused campaign for facebook. Calibra–which is the wallet slash app users
will make payments through, will be available in messenger, whatsapp and as a standalone
app. And this is why it has the potential to be
super powerful. Calibra will give virtually anyone with an
internet connection access to banking. And many whatsapp users, especially in developing
countries, may flock to calibra as an alternative to a bank account or as a more stable currency
option. Since libra is a fiat currency, it won’t
be volatile like bitcoin. And since it’s on the blockchain, transactions
can happen in an instant. Facebook will still have to jump through some
hoops before launching libra–since it’s money, it will need to meet government regulations. And every government may handle classification
of libra differently. But still, as early as next year, we all could
be walking around with a blockchain-powered cryptocurrency in our pocket–and it’ll
be perfectly normal. Though facebook may be the first big tech
company to enter the crypto space, other giants will be right on their heels. Apple is reportedly preparing to launch a
crypto wallet for your iphone–for more on that, check out the link below to a tech talk
we did on apple’s cryptokit. Thanks for watching this episode of tech feed. If you liked this video, be sure to give it
a thumbs up and subscribe to our channel. And check out the link below to more on this
story from computerworld. I want to know what you think about libra–will
you use it once it launches? Do you trust facebook to make a cryptocurrency? Let me know. See you next time.

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