- Facebook is currently the largest online social media platform
- Mark Zuckerberg has announced that they will be launching a new cryptocurrency called “Libra.”
- This new currency aims to make transactions easily by using apps in cell phones, like how people share videos and photos
Everyone connected to the internet will almost always have a Facebook account. Friends and family are connected via the social media service, where they can share photos and videos or chat with each other. They have also grown and acquired other social media sites. Now, they are looking into broadening their reach further by launching their cryptocurrency.
Cryptocurrency is a different kind of currency, unlike what is issued by banks. Cryptocurrency is all digital and is called “decentralized,” which means no governing body manages how much it should cost. Bitcoin is the most famous type of cryptocurrency and is considered the first of its kind.
On June 18, 2019, Facebook announced that they would be launching their cryptocurrency. From a post made by Facebook creator Mark Zuckerberg, they will be working with 27 other companies, and the new currency will be called “Libra.”
Libra will work similarly to how cryptocurrency works which is through blockchain technology and is planned to be available by 2020. Once Libra is available, it will be managed through a new subsidiary called Calibra. Calibra will first act as a digital wallet through Whatsapp and Messenger and then will become a standalone app afterwards.
Despite privacy issues that Facebook has encountered recently, they assured that they would not have control over Libra, but instead, all of the companies that are with Libra will have a vote for any decision-making, and Facebook will only be part of the said votes.
With the announcement of Libra, there are a few that are optimistic since it will allow transactions everywhere without worrying about different currencies, but the United States government wants to look into it further first. An article from The Verge has reported that the Senate Banking Committee will hold a hearing to ask for further details on Libra, and it will be held next month.
We’ll keep you updated if there are more developments to this story.