Facebook to launch new cryptocurrency

[jthompson]

https://www.bbc.co.uk/news/business-48664253

Social media giant Facebook has unveiled plans to launch a new digital currency, called Libra, next year.

 

It said people would be able to make payments with the currency via its own apps, as well as on messaging service WhatsApp.

 

Firms such as Uber and Visa are also likely to accept it in future, it said.

 

https://libra.org/en-US/

 

I feel like I don't understand blockchain or economics enough to form a proper opinion on this, but my gut is telling me to have a bargepole at the ready.

[elsiegee40]

Funnily enough that bargepole was my first thought too when I read about this earlier

[FishCustard]

Not sure what problem this is trying to solve exactly. I get the whole "banking the unbanked" thing, but how will you convince peoples' employers to pay into whatever crypto-unicorn you create rather than just using cash?

[Knil92]

The thing with bitcoin is that it was made to not be controlled by one corporation. A company like facebook creating its own crypto currency kind of defeats the purpose of a crypto currency.

[jthompson]

Well, they do say they're handing it off to a non-profit consortium, to be based in Switzerland, but that might just be the bare minimum that was required to get other companies (PayPal, VISA, etc.) on board.

[FN-GM]

It sounds like they are copying what is being done with WeChat in China. You can send and receive payments with the app although I am not 100% sure if its crypto based or not.

[FishCustard]

Mmm, WeChat is an example of that sort of thing done right and adopted well. You can buy just about everything using it over there!

[elsiegee40]

Mmm, WeChat is an example of that sort of thing done right and adopted well. You can buy just about everything using it over there!

 

In a Chinese state-controlled kind of way

[FN-GM]

In a Chinese state-controlled kind of way

At least we don't have to worry about that. The government is capable.

[jthompson]

The Verge has an article on Libra that's nicely pitched at about my level of understanding - https://www.theverge.com/2019/6/18/18683867/facebook-cryptocurrency-libra-calibra-trust-banking

 

Getting into the central bank business could be great for companies... but it’s not clear why the average user should be excited.

[flyinghaggis]

Mmm, WeChat is an example of that sort of thing done right and adopted well. You can buy just about everything using it over there!

 

Thing is with WeChat presumably you're just transferring China's existing Renminbi currency between people. It sounds like Facebook is actually proposing their own currency which would have to be converted back and forth into local currencies?

 

My first thought would be that most governments and countries are likely to be strongly against the idea of a conglomerate of (mostly American) companies issuing a currency which provides a means of exchange for their citizens to use?

 

It'll be interesting to see how this plays out!

 

 

Facebook Token Runs Into Instant Political Opposition in Europe

“It is out of question’’ that Libra “become a sovereign currency,’’ Le Maire said in an interview on Europe 1 radio. “It can’t and it must not happen.”

Edited June 19, 2019 by flyinghaggis

[flyinghaggis]

Some pretty interesting comments from Zuckerberg regarding Libra today

 

“While we debate these issues, the rest of the world isn’t waiting,” he said. “China is moving quickly to launch similar ideas in the coming months. Libra will be backed mostly by dollars and I believe it will extend America’s financial leadership as well as our democratic values and oversight around the world. If America doesn’t innovate, our financial leadership is not guaranteed.”

 

https://www.theguardian.com/technology/2019/oct/22/libra-facebook-zuckerberg-delay-congress