Facebook has unveiled their very own digital currency which is similar to bitcoin, called Libra.
The social network platform is looking to create a new digital currency similar to bitcoin for global use which they hope to generate more e-commerce on its services and boost ads on their platforms.
Facebook has been able to create their currency with the help of its more than two dozen partners who are funding, building, and governing the system. Libra is a form of digital cash that uses encryption technology to make it secure. Cryptocurrencies exist not as physical bills or coins but rather as lines of digitally signed computer code.
Facebook has created a new subsidiary, Calibra, that’s developing a digital wallet to allow people to buy, send and use Libra.
Calibra states that they won’t share transaction information from Libras user financials with Facebook unless they are compelled to do so in criminal cases. But, there is a possibility that Facebook would be able to track some data about their consumers shopping and money transferring history. Moreover, Calibra own’t require users to have a Facebook account to make a free wallet, and it will allow people to send Libra through two of Facebook’s core messaging apps, WhatsApp and Messenger. Also, unlike other money transferring services, Libra won’t incur other fees while sending money across borders.