What is Libra? Facebook’s cryptocurrency explained Debbie White 14 Oct 2019, 21:08 Updated: 14 Oct 2019, 21:08 TO horoscope lovers it’s a star sign, but to Facebook, Libra is the name given to its expansion into e-commerce.
So what exactly is the tech giant’s cryptocurrency project? 4 Facebook’s Libra project is under pressure Credit: Reuters What is Libra, Facebook’s cryptocurrency?
A few months ago, Facebook launched a new project dubbed Libra – its proposed digital coin.
The social networking giant said it wanted to create a separate, private currency system to allow users to make cross-border payments more easily.
As with other cryptocurrencies, people will be able to buy and sell libras on exchanges for traditional currencies.
Facebook said that its alternative currency paves the way for smoother transactions and payments online.
And, it’s particularly aimed at those without credit cards or bank accounts.
Libra uses the same security and record-keeping principles as Bitcoin, the most popular digital currency system.
However, unlike Bitcoin, the project was initially backed by traditional financial companies, including PayPal, Visa and Mastercard, as the plan is to base its value on multiple real-world currencies, such as the US dollar and the euro.4 Despite promising much at the start, there’s been an exodus of companies initially attracted to the cryptocurrency Credit: Getty – Contributor MASS EXODUS
But, much can happen in just a few months.
The firm’s proposal to allow people to move money from their smartphone into a digital “wallet” was met with heavy criticism .
One cyber security expert branded the cryptocurrency “Facebook’s most invasive and dangerous form of surveillance yet”.
And even US President Donald Trump weighed in, tweeting after the project was announced: “I’m not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.
“Unregulated crypto assets can facilitate unlawful behaviour, including drug trade and other illegal activity.
“Similarly, Facebook’s Libra’s ‘virtual currency’ will have little standing or dependability.
“If Facebook and other companies want to become a bank, they must seek a new banking charter and become subject to all banking regulations, just like other banks.” 4 ‘Not a fan’: America’s president Donald Trump shies away from Facebook’s project
Following warnings from politicians and regulators, from America to Europe, Facebook is now without the backing of any major payments firms for its project, due to launch by June 2020.
It’s been rocked by defection after defection, with global payments backers Mastercard and Visa abandoning the project.
PayPal has also announced its departure.
EBay has similarly pulled the plug along with online travel company Booking Holding, the owner of Booking.com, Kayak and Priceline.’NO GLOBAL PLAYER’ TOP STORIES AT THE SUN Exclusive Jamie Vardy deletes Wayne Rooney from social media after WAGs’ leak row ‘massive shock’ Joe Sugg says Dianne Buswell is ‘not OK’ after Dev was booted off Strictly COOKING UP A ROMANCE Gordon Ramsay reveals daughter Tilly is ‘dating’ Gino D’Acampo’s son STROKE OF LOVE Strictly fans spot Kelvin Fletcher stroking Oti Mabuse before results HOUSE ABOUT THAT Single mum returns from hols to find parents transformed her flat for £50 BIG DADDY David Tennant welcomes FIFTH child with wife Georgia with Good Omens post DEJA BREW Coleen grabs a coffee as Vinnie Jones brands her & Becky Vardy ’embarrassments’ maur than friends Love Island’s Maura & Curtis are FINALLY official boyfriend & girlfriend JORD DROPPING James Jordan says Strictly judges are full of ‘bulls**t’ after Dev’s exit Exclusive WAGS AT WAR Pregnant Becky Vardy sobs as Coleen suspects she leaked stories for four YEARS
News agency Reuters points out that being dumped by so many major financial firms “means Facebook’s Libra can no longer count on a global player to help consumers turn their currency into Libra, and facilitate transactions.
“This presents a new stumbling block for Libra’s efforts to convince regulators and politicians about the coin’s safety.”
Also: France has pledged to block Libra from operating in Europe The Bank of England has laid out tough hurdles it must meet The US Federal Reserve wants concerns overcome What is a cryptocurrency?
Bitcoin got you baffled? Here’s what you really need to know A cryptocurrency is a virtual currency Examples include Bitcoin and the new Facebook-led coin “Libra” It’s traded between people without the help of a bank Every transaction is recorded in a public ledger, or ‘blockchain’ Crypto cash is created by mining Mining involves solving difficult maths problems using computer processors Coins can be traded anonymously, which makes them a popular way of funding illegal activities A single Bitcoin is worth over £6,000 today, but the value fluctuates wildly 4 Facebook’s Libra plan has had to battle a sea of critics since it was announced in June Credit: AP:Associated Press Topics.
What is Libra? Facebook’s cryptocurrency explained
What is Libra? Facebook’s cryptocurrency explained Debbie White 14 Oct 2019, 21:08 Updated: 14 Oct 2019, 21:08 TO horoscope lovers it’s a star sign, but to Facebook, Libra is the name given to its expansion into e-commerce. So what exactly is the tech giant’s cryptocurrency project? 4 Facebook’s Libra project is under pressure Credit: Reuters…
