Facebook announces “Libra”, its own cryptocurrency

Facebook has announced it will launch its own cryptocurrency called Libra. This is part in its bid to join the world of digital currencies alongside Bitcoin and many others. Facebook has partnered up with enterprises such as Mastercard, Paypal, Visa and many more to make it happen. Libra is scheduled to go live next year.

How will it work?

Lybra payments will be included in applications such as Facebook Messenger and WhatsApp. This will allow for payments in physical shops. Furthermore, Facebook users will be able to transfer to one another.

Legislation

Meanwhile, just hours after the announcement of Libra, there have been politicians raising concerns about its foundation. Facebook says it will govern the currency, announcing it will create a seperate entity called “Calibra” to be in control of the currency. This managerial structure, however, has not yet convinced Maxine Waters, who is a  US congresswoman. She wants Facebook to wait for policymakers to have a look and examine the product before it will become available.

Libra is still under development. The underlying technology, called blockchain, is still subject to changes. After the development has finished, the final examination of the product by policymaker will take place. After Libra is in its final shape, assuming Libra will be allowed to go live, billions of Facebook users will have access to Calibra’s services.