Facebook told how to prevent Libra users from breaking the law

Facebook has responded to the sharp criticism of US President Donald Trump, who denied the stability and reliability of the company Libra cryptocurrency, which is being developed by the Facebook. The politician expressed the opinion that Facebook’s virtual currency “will have low position in financial field and have a low degree of reliability,” and Mark Zuckerberg’s company should obtain a banking license so that it can be regulated like any other financial institution.

Libra should be launched by 2020, and a subsidiary firm Calibra, founded by Facebook, will provide financial services based on it. Users will be able to pay with a cryptocurrency through a special wallet, which will first be available inside Facebook Messenger and WhatsApp messengers, and next year – as a standalone application for Android and iOS.

As TechCrunch was told in the company, even a person who does not have a state ID card can transfer and withdraw funds from the Calibra wallet (that is, to exchange Libra for cash). This can be done through an agent or representative of the company. At the same time, Facebook assured, the company is developing a joint solution with regulatory authorities to prevent money laundering schemes.

Negotiations on this, including the ongoing with local stores and exchange offices (to find the nearest will be through the application), which should help organize their customer trust checks. “Choose the one that is closer, indicate the amount and get a QR code that you can present on the spot to complete the transaction,” said Facebook. Moreover, they promised, all operations will be subject to sales taxes and capital gains – in accordance with the law.

crypto currency

At the same time, the Libra association — Mastercard, Visa, eBay, PayPal, Stripe, Spotify, Uber, Lyft, and Vodafone — will not interact directly with customers or act as a bank. Libra, explained on Facebook, is primarily conceived as an addition to the existing financial system, and not its replacement.

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