Facebook has announced its ingress into the cryptocurrency game with the announcement of Libra. Libra is a cryptocurrency that’s expected to let you buy things and send money to people, all for little to no cost to the consumer. It works similar to that of other cryptocurrencies like Bitcoin, Etherium, and Dogecoin, where no central bank owns it. Unlike Bitcoin however, Libra is expected to have a stable value with the backing of various currencies across the globe like the dollar and yen.
Facebook themselves will not own the cryptocurrency according to multiple reports. Instead they will only have a vote in Libra’s governance along with founding members like Uber, Visa, and Spotify, who have invested at least $10 million into the project. Partners like Uber and Spotify are expected to soon accept Libra as a method of payment for services and subscriptions in the near future.
The project is expected to promote an open-source blockchain as well as its own developer platform with Move programming language. The project is also going to work with businesses to accept payments in Libra and eventually offer discounts and rewards to Libra users.
Libra users will be able to hold all their currency in a digital wallet expected to launch in 2020 called Calibra, which Facebook also announced. The app’s services will also be integrated into Facebook’s services like WhatsApp and Messenger for when its users want to transfer money from peer to peer.
Many people have already expressed concerns about the new cryptocurrency, especially since it’s got Facebook’s branding on it. One reporter from MarketWatch wrote that consumers might be tempted to overspend because the cryptocurrency is more akin to a credit card than to actual cash and will think that it’s “Facebook’s Money” instead of their own. That same reporter also mentioned that the success of Libra will depend on if users will be able to understand how it works.
We should know more about Libra within 2020 as their cryptocurrency wallet Calibra is expected to launch within that year. Anyone who wants to get notified about when Calibra launches can visit its website and sign up for its newsletter. If you wish to learn more about Libra you can read their white paper, which is what a cryptocurrency publishes detailing the info regarding their currency, on their official website.