Facebook's Libra: What It Is And How To Use It

Facebook Inc FB on Tuesday shared its plans to launch its own digital currency called Libra in the next six to 12 months.

What It Is

Calibra is the newly formed Facebook subsidiary and the first product the group will introduce is a digital wallet for Libra in 2020. The wallet will be available in Messenger, WhatsApp and as a standalone app. The social networking giant is still in the early stages of developing Calibra.

The social network, which already dominates daily communications, highlights 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.

How To Use It

Calibra will allow users to send its digital currency Libra to almost anyone with a smartphone instantly like a text message and at low to no cost.

"Calibra will have strong protections in place to keep your money and your information safe," the company said in a blog post. "We’ll be using all the same verification and anti-fraud processes that banks and credit cards use, and we’ll have automated systems that will proactively monitor activity to detect and prevent fraudulent behavior... and if someone fraudulently gains access to your account and you lose some Libra as a result, we’ll offer you a refund."

Facebook shares traded higher by 1.8% to $192.49 in Tuesday's pre-market session.

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