The social media giant, Facebook Inc, is planning to release its very own cryptocurrency, named Libra, by next year. The hope is that the Libra will be traded on a global scale in the future.
According to reports by Bloomberg, Facebook has said that the goal is for the cryptocurrency to be used in everyday transactions and that Libra will not only be better than Bitcoin, but it could even one day rival the US Dollar.
Alastair Marsh of Bloomberg news said that this is a “really big deal, not only for crypto but potentially for the global financial economy as well.” This “big deal” points to the fact that Facebook has over two billion active customers and these users could, with the use of Libra, have a new online payment system at their fingertips.
The social media giant has already partnered up with 28 partners, including Mastercard and PayPal, but no banks are onboard with the project so far.
The fact that this could lead to Facebook expanding into digital payments has “raised privacy concerns and political backlash,” according to Reuters.
U.S. House Financial Services Committee chairwoman, Maxine Waters, has asked Facebook executives to testify before Congress and stop work on Libra until lawmakers and regulators have had time to study the project.
“With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users,” Waters said.
Facebook has faced heavy criticism as to its mishandling of user data in the past.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.