Facebook Announces Libra, Its Own Cryptocurrency

Facebook is creating a new digital currency - Libra - to transform the way money moves around the globe.

Facebook recently announced the launch of a digital currency called Libra in the first half of 2020.
 
Facebook is leading a consortium of 28 companies to create an open-source digital currency and the goal for developers is to create services for consumers to send money around the world easily and for free, just as sending a message.
 
For making Libra of use, Facebook has partnered with payments companies like Visa, Stripe, PayPal and Mercado Pago that will help merchants accept Libra.
 
Though Facebook describes Libra as being - powered by blockchain, unlike other cryptocurrencies like Bitcoin, Libra will be backed by a reserve of real assets. So it can’t be mined and there’s no cap on the number of Libra that can be produced. And Libra won’t be decentralized at launch.
 
Libra blockchain being open-source will enable anyone to build a service or app that uses the currency. And wallets developed to use the service will be interoperable, allowing you to send money from Facebook’s Calibra wallet to any other system that accepts Libra.
 
 
Facebook said that it will not use financial information from the digital wallet for ad targeting on Facebook’s platforms and the two divisions will be kept totally separate.
 
As listed in the whitepaper, the Founding Members of the project, by industry are: 
  • Payments: Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa
  • Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, MercadoPago, Spotify AB, Uber Technologies, Inc.
  • Telecommunications: Iliad, Vodafone Group
  • Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited
  • Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures
  • Nonprofit and multilateral organizations, and academic institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking
Facebook hopes to have as many as 100 members of the Libra Association before the launch.