Facebook to introduce cryptocurreny named Libra in 2020; Partners include Paypal, Mastercard, Visa and Uber

Wed, Jun 19, 2019 3:12 PM on International, Latest,

Facebook is launching a new cryptocurrency in 2020 in association with Mastercard, Paypal, Visa and Uber. Facebook says Libra is different from the current cryptocurrencies as it will be backed by hard asset or real money.

Bitcoin started as a store of value, but Libra will be used for expenses and used as day-to-day currency and therefore is targeted towards ordinary people.

How is works?

First of all, the dollar will be converted into digital Libra currency, which will be stored in digital Calibra wallet for free.

However when one submits their dollar, the first question that comes is the safety and who will be accountable. In Libra's case, there is no involvement of bank, however they do have association with credible institutions of financial industry such as Paypal, Mastercard and Visa. Similarly, the non-profit organization called Libra association will serve as the Monetary authority of Libra.

The main goal of Libra is to be an international currency that wipes out physical borders and political boundaries, which will allow to send and receive Libra instantly all around the world.

Despite the promising popularity, critics have pointed out that Libra many not be able to take off given the regulatory hurdles associated with Facebook.