Libra

As some cryptocurrencies flag, could Facebook’s wallet be the real first global currency?

Libra is the zodiac sign known for balance, intellect and vanity. It’s also the new digital currency Facebook is launching in 2020. Libra is being positioned as a more efficient form of money for traditional consumers and businesses – and a necessary option for the billions of people globally who cannot access the traditional banking industry. 

The technology behind Libra is similar to more established digital currencies, such as Bitcoin, and relies on blockchain authentication. Unlike Bitcoin, however, Libra is meant to be a true currency and not an asset class, meaning that users wouldn’t so much invest in Libra as use it the same way they would a dollar bill. 

A global digital currency has long been the holy grail of economists and, in theory, would offer many advantages to users, including the end of exchange rates, reduced account fees and general ease of use. In short, it could completely transform how money is used while also preserving its core function of enabling transactions.

With more than a purported 2 billion users on the Facebook platform, the move has regulators around the globe concerned about a centralised technology platform for a decentralised currency. In other words, Facebook and other partners would have exclusivity over how the currency works. Considering CEO Mark Zuckerberg was recently unaware his company was selling ad space to white supremacists and enabling the sharing of child pornography, such concerns are not unfounded.

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Image credit: Piero Zagami and Michela Nicchiotti.