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Facebook is planning to launch their own cryptocurrency
- By Elite CIO
Jun 24, 2019
13
Facebook is planning to launch their own cryptocurrency
Facebook is planning to launch their own cryptocurrency which will be known as Libra coin and digital wallet which will be known as Calibra. Facebook's entry into the banking marketplace will put up additional pressure on commercial banks.
This isn't the first time when Facebook has attempted to enter into the financial sector. Few years ago, they had launched their own credit card. To address potential issues, Facebook said its Libra cryptocurrency platform will be governed by a non-profit consortium of dozens of third-party businesses, including potential competitors such as PayPal, Master card and Visa. Facebook also created Libra Networks, a Geneva-based subsidiary, to run the cryptocurrency platform's operations. Facebook said it will also not mix user social media information and their financial data and it will not have access to the latter.
Libra is the first digital global currency that will potentially be used by billions of users around the world. If successful, it will likely take significant amounts of money out of the bank depository systems into the Libra network, and may also be used for large fund movements that banks have no visibility.
Author : Atul Bansal, Gateway Rail