Facebook to release its own cryptocurrency in 2020

Facebook has said that while users will be able to send the currency, called Libra, using its messaging apps, it won't integrate Libra and Facebook data. Each member organization has one vote, and the number of voting members and processing nodes is set to increase as Libra grows, with each new user adding cash to the reserve in exchange for Libra.

Anthony Pompliano, Co-founder of Morgan Creek Digital, was more reserved with his feelings for Facebook's new venture, while applauding Facebook's ambition behind the project. It says that "moving money around the world should be as easy and cheap as sending a text message".

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".

"Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies", she said in a statement.

However, Facebook has an ambitious plan to have Libra ready by 2020. "This means Calibra customers' account information and financial data will not be used to improve ad targeting on the Facebook family of products".

In addition to competition and privacy concerns, regulators will also be concerned about Facebook's wish to enable its cryptociurrency to be converted into other currencies, raising the prospect of increased money laundering.

The company says that "f$3 rom the beginning, 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".

"Any information you share with Calibra will be kept separate from information you share on Facebook", Zuckerberg wrote in his blog post. "We're trying to draw a bright red line". Initial partners include Visa, Mastercard, Uber, PayPal and Stripe.

"I find it very significant that bitcoin peaked at the launch of the CME Futures contract but bottomed literally when JP Morgan knocked bitcoin", Frank Holmes, chief executive officer of U.S Global Investors and the chairman of HIVE Blockchain Technologies (TSX/V: HIVE) said on Monday. Because the proper alternative to fiat currencies, in the eyes of many decentralists, is an asset like BTC, which is decentralized, trustless, permissionless, borderless, and programmable, among many things that make cryptocurrencies valuable.

And while bitcoin has been deemed risky in the past, it climbed to $9,300 on Monday - its highest level in 13 months.

The price of bitcoin climbed above $9,000 for the first time in a year on anticipation of the Libra announcement, indicating the importance of a mainstream company with the size and scope of Facebook throwing its weight behind the evolving digital coin space.

The technical underpinnings of Libra are similar to that of Bitcoin, with both digital currencies relying in blockchain technology to track and verify payments.

They also point out that the Libra blockchain is still under development and there is little detail about how the system will work.

"The potential trade-off, however, is privacy", Chapple said. Cryptocurrencies operate on a "blockchain", a record of transactions created to be resistant.

"This instrument for transactions will allow Facebook to collect millions and millions of data, which strengthens my conviction that there is a need to regulate the digital giants", said French Finance Minister Bruno Le Maire in an interview on Europe 1 radio.

  • Zachary Reyes