Facebook to launch new cryptocurrency called “Libra”

Facebook is at it again. The social networking company has announced its plans to help launch a new cryptocurrency in 2020 called Libra, marking one of the company’s most aggressive moves yet to push beyond digital advertising, NBC News reported.

Libra Association, a new nonprofit organisation based in Geneva, will oversee the currency, “Libra.” It will initially be backed by Facebook’s expertise but will be governed by 28 founding partners including payment firms, Visa and Mastercard and internet companies, eBay, Spotify and Uber.

Facebook said that it wants the currency to be available starting the first half of 2020 and that it believes many of the 2 billion people who are already on the company’s services will one day use the new currency to buy things or send money internationally on a regular basis.

Libra will not be exactly like bitcoin or other so-called cryptocurrencies that are known for their decentralized nature, existing outside any central authority such as a government or large, corporate association.

Libra’s value will be pegged to a reserve of real, low-volatility assets, making it relatively stable compared to the notoriously fluctuating value of bitcoin, according to Facebook and the Libra Association.

Facebook said it plans to offer financial services, possibly one day including loans, through a new subsidiary that specializes in Libra.

This is a massive move from facebook, right? Let us know what you think.

You can read more on the story here.