In a bid to shake up how we use money, Facebook is launching its own cryptocurrency – Libra.
It promises to be a global payment system that’ll be able to power transactions between businesses and consumers around the globe. This way, you won’t have to worry about exchange rates or additional fees when purchasing something not sold in Canadian dollars.
How is Libra different from other cryptocurrencies?
The biggest difference between Libra and other cryptocurrencies like Bitcoin is that it’ll be supported by a pool of actual cash reserves from various currencies around the globe.
It also currently has the backing of 28 companies, with entities such as Uber, PayPal, eBay, as well as both Visa and Mastercard signing on. Currently, no banks have signed on as a partner at this point, waiting to see market reactions, and what regulators think as well.
Facebook is engaging regulators to ease concerns and ensure security for anyone who holds the currency.
Will it ultimately launch?
Libra is still a long way away from launching. At this time, they’re planning on launching in the first half of 2020 and getting 100 partners on board.
However, if the project sees too much pushback from regulators, there’s no guarantee it’ll launch.
So whether or not we’ll have a new way to pay for products and services will have to wait.
Thoughts on the initial announcement
So, would I use this currency myself?
Right now, the answer is no.
There’s not a lot of details yet to straighten out on how it would work ‒ so we’ll have to wait and see.
I personally don’t make many purchases that aren’t in Canadian dollars, so I feel it would have limited use for me. (I still prefer a no foreign exchange fee credit card.)
Facebook also has had issues with user privacy and data breaches. And now they want to throw money in the mix?
They do promise to replace any currency that was taken by theft – more details on addressing these concerns would go a long way.
At the end of the day, it’s best to wait at least until the currency is launched before you make your decision.
Ends Dec 18, 2019.
What do you think about Facebook’s new currency?
Are you interested, or skeptical of what they are offering?
Let us know in the comments below.