With a high plan to run successful in e-commerce, Facebook is set to launch a new cryptocurrency into the market.
The company has unveiled a plan following numerous reports unraveling its upcoming announcement in detail. The tech giants has said that its in-development global cryptocurrency, called Libra, will launch next year alongside the underlying block chain-based network that will support it.
Libra which will be handled by a governing body and backed by stable financial assets is expected to debut in the first half of 2020.
The currency is stationed unlike a speculative asset, like Bitcoin, but a form of digital money backed by a reserve of assets. You will one day be able to use Libra as payment for online and offline services, some Facebook executives say.
The cryptocurrency will be used mainly to transfer money between individuals in developing countries who lack access to normal banks.
Facebook’s initiative could facilitate shopping, application, gaming, and other online activities. This would leverage its broad user base in Asia as implied by RBC analyst Mark Mahaney in a recent research note.
Steadily, the company’s goal is to create the first truly mainstream cryptocurrency a decentralized global form of payment that is as stable as the dollar, can be used to buy almost anything, and can support an entire range of financial products — from banking to loans to credit.
Facebook is setting up a consortium called “Libra” this has been joined by dozens of companies including Visa, Mastercard, Paypal and Uber as reported by Wall Street Journal.
Some of these companies along with venture capitalists and telecommunications firms will reportedly invest around $10 million each into the consortium.
The Social media giants have been trying toward off backlash and scrutiny after a period of privacy abuses news and spread of fake information. They have also sought some kind of permission from the US Treasury and the Bank of England.
With more than two billion users across its platforms, which include WhatsApp and Instagram, Facebook could have the mojo to bring cryptocurrency out of the fringes and emulate the likes of WeChat in China.
But it will need to overcome the barriers of trust and privacy, not at the very least over how financial data will be stored. Most people say that the new cryptocurrency Libra consortium will help to do that.
I am a tech enthusiasts with a zeal and passion to develop life globally through technology
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