Libra unveiled: What you need to know about Facebook’s new bitcoin rival

In what could be the biggest move in the cryptocurrency market since the rise of bitcoin, Facebook on Tuesday came out with the details of Libra, a new digital currency that the social networking giant claims will make financial transactions easier for average consumers and those without access to traditional banks.

And in order to make its lofty goals a reality, Facebook also said it is creating a new subsidiary called Calibra that will provide individuals with a digital wallet they can use to use buy items and send money online with Libra.

With approximately 2.4 billion users around the world, Facebook believes it has a customer base already in place and set to use Libra, as it will make its Calibra wallet available for use in its Facebook app, Messenger and WhatsApp services starting in 2020.

Facebook said that from the start, Calibra users will be able to send money to “almost anyone with a smartphone.” Over time, Facebook intends to add services such as bill paying and the ability to make everyday purchases like buying a cup of coffee or purchasing a transit pass to Calibra’s suite of services.

Facebook said that its cryptocurrency intentions stem from a belief that individuals in developed and developing countries will be able to improve their lives with easier access to non-traditional financial services.

“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,” Facebook said, in a statement announcing its Calibra subsidiary and upcoming wallet. “The cost of that exclusion is high.”

Facebook confirmed earlier reports that it has lined up a slate of financial and businesses to provide support for the Libra Association, a Geneva-based governing body that will oversee the growth and use of Libra. Among those joining Facebook in the Libra Association are credit card companies Visa and MasterCard, digital-payments service provider PayPal, ride-sharing giant Uber and music streaming leader Spotify.

Being that Facebook is involved, and the company has dealt with a raft of scandals involving the privacy and use of its members’ personal information, the company is stressing the privacy controls in will have in place when Calibra becomes available for for use.

Facebook said as Calibra will operate as a Facebook subsidiary, it “will not share account information or financial data with Facebook or any third party without customer consent, and “will not be used to improve ad targeting on the Facebook family of products.”