“People need banking, not banks.” Ranjit Sarai
Facebook is one of the next tech giants trying to enter into the financial services space. Facebook is in the process of developing a new digital currency called Libra. Libra.org describes Libra as “A simple global currency and financial infrastructure that empowers billions of people.”
Libra is an up and coming digital cryptocurrency that utilizes blockchain, similar to Bitcoin, Ethereum, and Litecoin. Facebook aims to reinvent money and transform the global economy. Facebook’s Libra will be backed by a reserve with real currency.
The Libra Association consists of different organizations from around the world. A few of the notable companies within the Libra Association include: Facebook, Spotify, Lyft, Uber, and Coinbase. The Libra Association is based out of Geneva, Switzerland. The Association’s goal is to expand the use of Libra and help integrate the cryptocurrency in everyday life.
Facebook’s Libra has faced many obstacles due to its previous data information mishaps and its investors backing out. Users stated that Facebook lost their trust since they misused data many times. Libra is also facing heat from traditional banks and government organizations because it posses such a big threat. Government agencies have doubts that they can properly regulate the cryptocurrency because Facebook is so big.
Facebook has over 2.5 billion users. Digital currencies will allow us to have one form of global currency.
What are your thoughts on Facebook launching its own currency?
Action
Tune in to The WEInvested Podcast every Wednesday @ 7 pm PST for more finance discussions.
Follow us on Instagram, Facebook, Youtube, and Twitter: @WEInvested
