Technology 2 min read

Facebook To Announce Its Libra Cryptocurrency This Week

geralt / Pixabay

geralt / Pixabay

Facebook is trying to build a crypto-based payment around its extensive network, and it’s calling the crypto-coin Libra cryptocurrency.

According to reports on the Wall Street Journal, Facebook is set to announce its upcoming cryptocurrency this week.

Last month, the social media giant reportedly registered a new company, Libra Network, in Geneva. With this registration, Facebook inadvertently announced its first foray into blockchain technology.

Before then, it had secured the backing of different companies, including major financial institution. These include Visa, MasterCard, PayPal, Stripe, Uber, and booking.com.

The companies had to invest $10 million each for the development of the cryptocurrency. In return, they’ll be part of an independent consortium that’ll govern the digital currency, Libra Association.

Now, here’s the big puzzle.

Cryptocurrencies are generally considered a cheaper alternative to payment networks such as MasterCard and Visa. So, why would these major financial firms invest in a potential competitor?

Well, Facebook has about 2.4 billion monthly active users. Aside from benefiting from the potential success of the cryptocurrency, the companies can monitor the social media giant’s payment ambitions.

The independent body, Libra Association, exists to protect the regulator and users who have grown cautious of the power Facebook wields.

Libra Cryptocurrency and Possible Regulatory Hurdles

Tech Crunch reported that Facebook intends to unveil the new Libra cryptocurrency on June 18th, with its full release stated for 2020.

The cryptocurrency will function as a “Stablecoin.” That means, it’ll be pegged to an exchange-traded commodity or government-issued currency to limit volatility.

Aside from allowing users to send money across all its platform, Facebook hopes to encourage eCommerce firms to spend the currency online through a partnership. Also, the social media company is reportedly developing physical terminals to enable the conversion of fiat currency into Libra.

But before it can launch its cryptocurrency, Facebook must first overcome several regulatory hurdles.

One of the most significant concerns includes fraud and money laundering issues. This may be the primary determinant of the cryptocurrency’s success in key markets like India.

Facebook has reportedly met with the US Treasury and Western Union, including the Bank of England Governor, Mark Carney to discuss the opportunities and risks that come with Libra.

Read More: Cyber Immortality: Dead Facebook Users Will Soon Outnumber the Living

First AI Web Content Optimization Platform Just for Writers

Found this article interesting?

Let Sumbo Bello know how much you appreciate this article by clicking the heart icon and by sharing this article on social media.


Profile Image

Sumbo Bello

Sumbo Bello is a creative writer who enjoys creating data-driven content for news sites. In his spare time, he plays basketball and listens to Coldplay.

Comments (2)
Most Recent most recent
You
  1. Profile Image
    christiana shapes June 04 at 5:14 am GMT

    STOLEN OR LOST CRYPTOCURRENCY RECOVERY.
    NO UPFRONT FEES
    There is only one way to recover lost and stolen crypto and that is by contacting a recovery company. That best hiring company for recovery is HIGHJACKTECH ,take it from someone who already got help from them and i am glad to tell you all i successfully recovered my money from scam after reaching out to them for help….
    “HIGHJACKTECH ART GEE MAIL DOT COM”
    WHATSAPP: +1 856 219 0486
    101 N BRAND BLVD.
    11TH FLOOR GLENDALE CA 91203

  2. Profile Image
    Anthony Gary January 03 at 3:26 pm GMT

    Is safe to say this. I will advice you take proper research about the platform you chose to invest in. I was a victim to some crypto sc@m and I lost almost all my coin am glad I was able to seek help from Marketpeace.net a rec0very company and I got it back. So be guided with this guys

share Scroll to top

Link Copied Successfully

Sign in

Sign in to access your personalized homepage, follow authors and topics you love, and clap for stories that matter to you.

Sign in with Google Sign in with Facebook

By using our site you agree to our privacy policy.