Facebook formally announced plans to launch its cryptocurrency this week. The new cryptocurrency will also be a stablecoin, known as Libra, should be made available in 2020. Facebook will control Libra together with a number of other well known global brands ranging from Visa, Mastercard, eBay, and Uber, but the crypto wallet Calibra will be owned solely by the social network giant.
As we wrote just a few months ago, the launch of a cryptocurrency by one of the largest technology companies in the world could have a significant impact on the actions of other companies and investors.
“A move that could diversify its business from advertising while claiming a larger role in its users’ financial lives. The cryptocurrency, called Libra, will be a secure blockchain-based payment system backed by hard assets and designed for ordinary users—making it among the boldest efforts yet to bring digital currencies into mainstream use,” The Wall Street Journal reports.
“Facebook’s impending move to offer a digital currency will create a new regulatory minefield for a company whose privacy practices have already provoked attacks from lawmakers in the U.S. and Europe,” POLITICO’s Patrick Temple-West and Matei Rosca report on the social network’s new venture, “Project Libra,” which is expected to be unveiled today. “As with other cryptocurrencies such as Bitcoin, the new Facebook coin could become a tool for money launderers and terrorist financiers, a risk that has drawn the attention of lawmakers and regulators.”
See our infographic below for more information:
HODL Finance is the European digital lending company. HODL Finance issues loans backed by cryptocurrency and other digital assets. Founded by the shareholders of the peer-to-peer lending platform, Savy, HODL Finance now serves clients around the world.