Facebook Plans To Launch Its Own Digital Currency
Facebook is getting into the banking business.
It wants to replace physical cash with its own digital money.
The social network announced Tuesday that it plans to launch the new cryptocurrency, called Libra, sometime next year.
How does it work?
You would use dollars to buy Libra and save it in a digital wallet.
You could then use messenger or what’s app to transfer money to friends, like people already do with Venmo.
You could use it in another country, without worrying about an exchange rate.
And Facebook hopes some of its 2-billion users will use it to buy stuff online from one of the social network’s many advertisers.
27 companies like Visa, Paypal, eBay, Uber and Spotify have already signed on to help launch and govern Libra.
Unlike unregulated digital currency like Bitc
oin, Libra will be overseen by a non-profit in Geneva.
And Libra would be backed up by real money, like the U.S. Dollar and the Euro, so it is said to be more stable than other digital currency.
Facebook hopes these measures will ease the concerns of people who don’t trust the social network, given its troubled past for sharing user data and for not policing fake news and ads from groups looking to meddle in American politics.