News Technology Sports Travel Entertainment Finance Education
Facebook wants to make cryptocurrency mainstream
Posted On June 19, 2019
For the last year, Facebook has been signaling it wants in on the cryptocurrency phenomenon. At its F8 developers conference last month, cofounder and CEO Mark Zuckerberg said he wants to make sending money as easy as sending a photo: digital, immediate, free and secure.
On Tuesday, the company formally unveiled its highly-anticipated digital currency project. It’s called Libra. Facebook (FB) also announced the creation of the Libra Association, an independent organization that will manage the currency, and Calibra, a unit of Facebook that will build applications related to the new digital currency.
Facebook has 2.4 billion users around the world, an audience that could help it spur a bigger mainstream adoption of cryptocurrency than others have yet to generate. At the same time, the announcement comes at a critical moment in Facebook’s history. The company is under regulatory and political scrutiny for its massive influence, as well as its mishandling of user data, even as it works to further extend its reach into users’ lives.
As part of the announcement, Facebook launched a test version of its blockchain, the technology upon which cryptocurrencies like bitcoin are built. It is open-source software, meaning developers can experiment with building applications on the platform and submit feedback on the code. The currency itself is set to launch in 2020. “Libra’s mission is to be a simple, global currency and financial infrastructure that empowers billions of people,” said Facebook’s David Marcus, who runs Calibra and headed up the Libra project. One of the aims of the project is to help the 1.7 billion people around the world who don’t have bank accounts access a stable currency and financial services.
In recent months, the company established the Libra Association, a not-for-profit governing body that will oversee Libra. Facebook says it did not want to be solely in charge of Libra because it intends for the cryptocurrency to be a “public good.” The group has 28 founding members — companies and nonprofits from several different countries — including Facebook, which says it will have just one equal vote. The association will be based in Geneva and officially take up its post this week overseeing the rollout of Libra. Facebook hopes to have 100 association members by the 2020 launch.