Tech unicorn Facebook is entering the crypto space with its new venture codenamed ‘Libra.’ The new Facebook Cryptocurrency venture could open up a new revenue stream for the company and bring in millions. Amidst the several data breaches and the costly anti-trust probe, the unveiling of Libra could keep regulators on their feet and add an additional tint of vigilance on their specs.
By the looks of it, Mark Zuckerberg isn’t trying to take Bitcoin’s place. The Libra project could just be another effort by the company to keep customers within their apps by creating their own money. Early reports suggest the new digital coin will allow Facebook’s base of more than 2 billion users across Facebook, Instagram, and WhatsApp to transfer money and purchase goods without fees.
Experts suggest the Facebook cryptocurrency could be a more stable alternative of transferring money in volatile markets and make money matters more streamlined across Facebook-owned apps. Facebook has made efforts to make conducting businesses easier on Facebook and Instagram. And since Facebook and Facebook owned Instagram and WhatsApp see the highest social media traffic, having a Facebook cryptocurrency seems to be Facebook’s strategy to keep the traffic within the walled area of its apps.
Several companies are set to be a part of the governing group of Facebook’s cryptocurrency. The group, known as Libra Association, includes the likes of Visa, MasterCard, and PayPal. The consortium also includes eBay, Spotify, Vodafone, and Uber. Facebook started its crypto planning in 2018 with David Marcus, VP of its Messenger app and former member of Coinbase’s board, to lead its efforts in Crypto.
The company registered the new venture’s name as Libra Networks LLC in Geneva, Switzerland. According to BBC, Libra will be launched in 2020 and Facebook has plans to begin testing it later this year.
Experts suggest that the caliber of Libra partners and Facebook’s massive user base could give way to the next wave in cryptocurrency. This comes in a time when many regulators are trying to contain the monopolistic abilities that such unicorns enjoy. And though Facebook tries to assure regulators that Libra’s purpose is to only extend more convenience to its users, one cannot turn a blind eye to the severe repercussions the world could face if Facebook continues to misuse its power. Till now we know that Libra’s rate, in contrast to bitcoin which is governed by the free market forces, will be pegged to existing currencies such as the Dollar or Euro. More about the Facebook cryptocurrency will be known later this year.
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