In a move that could potentially shake up the world’s banking system, Facebook has unveiled a digital currency called Libra. It will let about 2.4 billion of its users to make financial transactions across the globe through it instead of their local currency.
The users who don’t have bank accounts but have access to mobile phones will be able to receive and send money in a seamless way. The platform which will integrate with the Facebook apps including WhatsApp and Messenger will roll out over the next year.
A joint effort
Libra is the brainchild of a non-profit association by the same name made up of 28 different organizations around the world. Big names like Mastercard, PayPal, Visa along with Spotify, eBay and Uber are associated with it. All of them will together govern its operations from its headquarters in Geneva, Switzerland.
Hurdles in the way
Facebook which has faced severe backlash over privacy breaches in the recent past may face opposition from privacy advocates, consumer groups and regulators to start these operations.
Facebook has built the currency on its own blockchain technology which has been used by bitcoin and other cryptocurrencies.
It will be closed, and operated by only a select number of people.
It has promised to give refunds to any users in case of a hacking or Libras being stolen from their digital wallets.