Social networking site Facebook announced on Tuesday that it was going to launch its own virtual currency (cryptocurrency). It will be known as 'Libra'. The purpose of this step is to create a low-cost global payment system through the existing available smart means. Libra is being termed as 'a new global currency'. It is expected to come into force by next year. It has the support of more than 25 partners, including non-profit and financial services and online commerce organizations.
This new virtual currency will receive real property support according to its value and will be within the scope of regulation. According to an announcement made on Tuesday, it will be available through Facebook's own digital wallet Calibra and other services. Cryptocurrency Libra will play a significant role in the payment systems of Facebook, WhatsApp, Messenger and Instagram.
Facebook had already said that the company wants to bring in new virtual currency with the help of government and financial sector giants. The world's largest social networking company believes that this new virtual currency will avoid the ups and downs of blockchain technology based currencies like Bitcoin. According to the Wall Street Journal, more than a dozen companies like Visa, MasterCard, PayPal and Uber are expected to join Facebook's cryptocurrency 'Libra'. It is reported that these companies, together with venture capitalists and telecommunications companies, will invest $ 100 million in this alliance.
Technically Libra, Moon, and government-backed cryptocurrencies aren't really decentralized cryptocurrencies and therefore digital cash, but hey, at least when Libra rolls out I can finally go and tell the Philippines to use actual crypto.