Monday, 18 November, 2019

Facebook Wants New Cryptocurrency to Rival the Dollar

'Sell Bitcoin... buy Libra' – should you invest in Facebook's new digital currency? Facebook reveals its new digital currency called Libra
Ginger Lawrence | 19 June, 2019, 10:38

"Facebook coin will do for money laundering what Facebook did for fake news - likely lead to an explosion in terrorist financing", Charlie Delingpole of anti-money-laundering consultancy Comply Advantage told Politico.

On Tuesday, the company shared early plans for Calibra - a new Facebook subsidiary - whose goal is to provide financial services that will let people access and participate in the Libra network: a new global currency powered by blockchain technology.

The social network has published a white paper explaining how Libra will work, although it won't actually launch until the first half of 2020. If Facebook is successful in rolling out Libra, they might have the power to become a "shadow bank" as expressed by Ferber.

The company said that right from the start, "Calibra will let you send Libra to nearly anyone with a smartphone, as easily and instantly as you might send a text message and at low to no cost".

Other regulators, lawmakers and government officials around the globe also quickly issued critical statements.

French Finance Minister Bruno Le Maire said such digital money could never replace sovereign currencies.

And Bank of America: "With more than 2.5 billion users, Facebook and its partners could be a significant endorsement of cryptocurrency and a notable addition to the Facebook app ecosystem".

Some have called for Facebook to face penalties, or be forcibly broken up, for mishandling user data, allowing troubling material to appear on its site and not preventing Russian interference in the 2016 USA presidential election through a social media disinformation campaign. "That's why I think the Facebook coin could be a watershed moment in crypto". "We're eager to do that".

Facebook said it would not make any money through Libra or Calibra but was seeking to "drive adoption and scale" before exploring ways to monetize the new system.

"Freedom, justice and money, which is exactly what we're trying to do here", he said.

Manchester United has signed up Daniel James from Swansea
I never thought I'd be able to play against them, never mind play for them, so it's surreal, and I'm really looking forward to it. Now with James on board (a natural winger), it should mean Manchester United have more variety in their attacks.

Facebook shares closed up 0.1 per cent.

Because Libra is "user-friendly", Chapple continued, it won't require the specialized software or technical savvy requited to purchase cryptocurrencies like bitcoin.

But Facebook's status as a Silicon Valley behemoth touching billions of people around the world could help legitimise what has so far been a niche and volatile market.

The Libra Association will have 28 founding members which include corporations from the payments, technology, telecommunications, and venture capitalist industries. Each gets one vote on substantial decisions and firms must invest at least $10 million to join.

But the move raised questions about how such a new money would be regulated.

A 3-D printed Facebook logo is seen on representations of virtual currency in this illustration picture, June 18, 2019.

For instance, Calibra plans to conduct compliance checks on customers who want to sign up, using verification and anti-fraud processes that are common among banks.

Facebook said people can keep their individual transactions from appearing on the blockchain by using Calibra's wallet app, though in that case, Calibra would have your data instead.

And, Mastercard's Lambert said that if the project receives too much pushback, "we might not launch".