Facebook has revealed its plans for a new digital currency
which it says will allow people to make instant and almost free money transfers
to people and businesses anywhere in the world from their mobile phones.
The new digital coin, Libra, has the backing of over 24
companies including household names like Visa, Mastercard and Spotify.
Rosie Burbidge, Partner at gunnercooke and blockchain
specialist, said the news is a sign that use of cryptocurrency is becoming more
acceptable and entering the mainstream. While Facebook has a terrific user base
and the right tools to make this happen, given Facebook’s recent data
protection and privacy issues it is inevitable that regulators, particularly in
the EU, will be looking at this development very closely.
“This has been in the pipeline for a while and it fits in
with Facebook’s longer term strategy to move into areas like retail and
traditional media (in addition to social media). An important feature of
Facebook’s Libra currency is that it is pegged to fiat currencies. So while
Bitcoin has suffered from massive currency fluctuations, Facebook’s approach
should avoid those ups and downs.”