Conference call: What Facebook's Libra means for the aid sector
Nonprofits put their reputations on the line when they joined the Libra Association, which will handle the design and release of Facebook's new global currency. Learn about the risks and what's next with the initiative from Senior Reporter Catherine and Mercy Corps Director of Emerging Technology Ric Shreves.
SAN FRANCISCO — Nonprofits put their reputations on the line when they decided to join the Libra Association, the independent nonprofit entity that will handle the design and release of the new global cryptocurrency Facebook has been working on for more than a year. Mercy Corps, Women’s World Banking, and Kiva knew they would face questions on why they think Facebook, which has come under scrutiny for its mishandling of user data, can be trusted. But the benefits of partnership in areas including financial inclusion outweighed the risks, whether real or perceived, said Ric Shreves, director of emerging technology at Mercy Corps. Shreves joined Devex for a conference call where he discussed some of the reasons the NGO decided to join the Libra Association. “It was a heavy lift,” Shreves said of the months of effort that went into deciding whether Mercy Corps should be involved. The global nonprofit is not naive to the risks involved, but these were not reason enough not to participate, Shreves said. In fact, those very risks are the reason that NGOs need to be engaged in the Libra Association “from the outset,” he explained. As the association grows, NGOs can and should lend their voice and influence in the creation phase rather than waiting until this digital currency is fully developed. Shreve explained that people who ask whether Facebook can be trusted with the data the Libra network will generate do not seem to understand the difference between blockchain and digital wallets. Blockchain, a decentralized system of recordkeeping, is the technology on which Libra will be built, and does not store personally identifiable information, he said. Meanwhile, Facebook created Calibra, a digital wallet that will store the currency. It will be available as a standalone app, and also integrate directly into Messenger and WhatsApp, both products by Facebook. Calibra is a subsidiary that Facebook representatives said will not be allowed to share financial customer data with other divisions of the company. “The place where there’s the potential for leakage is with the wallets,” Shreves said. The real question is whether people will use Calibra or “the undoubtedly many independent wallets” that will be built on this open-source platform, he explained. And NGOs can play an important role in helping users “go in with their eyes open,” Shreves said. The Libra Association, based in Geneva, Switzerland, aims to grow from 27 to 100 members. Shreves said he wants to see more organizations “directly concerned with the disenfranchisement of marginal populations and financial planning and financial inclusion” involved in the effort. NGOs evaluating this need to do their homework, he added. Facebook went to market with a lot of information on Libra. While he acknowledged that many NGOs lack capacity in cryptocurrency, they can begin by reading the white paper on this new digital currency. Speakers: Ric Shreves, director of emerging technology, Mercy Corps; Catherine Cheney, senior reporter, Devex Moderator: Kelli Rogers, associate editor, Devex Have follow-up questions? Send them to webinars@devex.com. Listen to the full call here:
SAN FRANCISCO — Nonprofits put their reputations on the line when they decided to join the Libra Association, the independent nonprofit entity that will handle the design and release of the new global cryptocurrency Facebook has been working on for more than a year.
Mercy Corps, Women’s World Banking, and Kiva knew they would face questions on why they think Facebook, which has come under scrutiny for its mishandling of user data, can be trusted.
But the benefits of partnership in areas including financial inclusion outweighed the risks, whether real or perceived, said Ric Shreves, director of emerging technology at Mercy Corps.
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Catherine Cheney is the Senior Editor for Special Coverage at Devex. She leads the editorial vision of Devex’s news events and editorial coverage of key moments on the global development calendar. Catherine joined Devex as a reporter, focusing on technology and innovation in making progress on the Sustainable Development Goals. Prior to joining Devex, Catherine earned her bachelor’s and master’s degrees from Yale University, and worked as a web producer for POLITICO, a reporter for World Politics Review, and special projects editor at NationSwell. She has reported domestically and internationally for outlets including The Atlantic and the Washington Post. Catherine also works for the Solutions Journalism Network, a non profit organization that supports journalists and news organizations to report on responses to problems.
