Facebookâs plans to create a new cryptocurrency that can be used for everything from commerce to money transfers is facing pushback from angry US lawmakers.
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Facebook, a centralised corporate giant with a history of customer data-use controversies, is an unlikely candidate for bringing cryptocurrencies to the masses.
Facebook hopes its new cryptocurrency will one day trade on a global scale much like the US dollar. But to come anywhere close to matching the dollar for utility and acceptance, Libra will need to be widely trusted.
Naspers subsidiary PayU is among the founding members of the Libra Association, a group of companies that will have an equal say in how Facebook’s new cryptocurrency is managed.
Facebook is to launch a cryptocurrency next year – backed by the likes of Mastercard, Visa and PayPal – which will allow people to move money from their smartphones.
Facebook has announced its own form of cryptocurrency called Libra alongside a digital wallet named Calibra, which will allow users to pay for everyday items directly using their smartphone.
Regulators will be watching closely when Facebook unveils its cryptocurrency project this week. Their vigilance is warranted.