Facebook CEO Mark Zuckerberg on Tuesday announced the upcoming launch of a new digital currency called Libra. David Marcus, the head of Calibra -- the newly created Facebook subsidiary that will offer a digital wallet of the same name -- joined FOX Business to discuss plans for the new service that is expected to launch in 2020 and be a profitable venture for the social media platform.
Here are 5 facts, according to Marcus.
It’s powered by blockchain technology
Facebook is unveiling its plans for a “new type of blockchain,” according to Marcus. It’s expected to be so big, that it will be able to “meet the demands of billions of people that we ultimately want to serve when it launches.”
It’s supported by dozens of companies-- for now
Facebook has garnered the support of 27 companies, according to Marcus, including credit card giants Visa, Mastercard, digital payment company PayPal and ridesharing service Uber. Marcus also expects others to invest.
“Hopefully by the time this network goes live [there will be] over 100 different global organizations that will help manage and govern this new network and this new currency,” he said.
It’s not just for Facebook
In addition to being accessible via Messenger and WhatsApp, Libra will also be used as a standalone.
“Anyone can onramp and off-ramp to this new digital currency and pay one another across the world,” said Marcus.
It’s not bitcoin-- at all
In Marcus’ opinion, unlike bitcoin, the new currency is stable and will be run on blockchain technology that runs “from the ground up” in order to “process thousands of transactions per second.”
Banking information is safe
Facebook will not have access to financial data that will be available in Libra, according to Marcus. They designed Calibra in order to build trust in the new currency.
“We heard people loud and clear -- they don't want their financial data commingled with their social data and they certainly don't want their financial data being used for ad targeting and all of these things,” he said.