Facebook brings virtual currency 'Libra' to billions of subscribers. In the meantime, popular social media is going beyond social networking to e-commerce and global financial transactions. On Tuesday, Mark Zuckerberg announced the formation of the Libra Association in collaboration with more than 20 organizations around the world, with its headquarters in Geneva, Switzerland.
Libra Association, which has been declared as a non-profit organization, has already joined reputed organizations like MasterCard, eBay, PayPal, and Uber.
The announcement of the formation comes in June, but in the first part of 2020, the digital currency is going to drop Facebook.
Former PayPal officer David Marcus is leading the Libra project on Facebook. "Freedom, justice and money, that's exactly what we're trying to do here," he told Reuters.
Mastercard's Lambert said, "If this project is under a lot of control, we might not launch it again."
Facebook claims that this creation of their own currency, millions of people will benefit from Libra transactions without a bank account. Only through a mobile phone can they enter the banking world and send money.
Facebook says this cryptocurrency, built on blockchain technology, is an advanced and low-cost free banking service.
Mark Zuckerberg said on his Facebook status on security, that his cryptography method would provide customers with security in transactions. Facebook will bring digital wallet Calibra to its customers, which will be under the supervision of skilled staff. They will protect the customer from any fraud in the transaction.
Two other Facebook services, WhatsApp and Messenger, will launch the digital wallet app Calibra from next year.
"We will protect against fraud," Zuckerberg said. If you lose the Libra coin, we will refund it. It's just the beginning of a great journey.
Meanwhile, Guardian's comment, according to experts, could show the organization the profitability of Libra at this time of financial studies.
In addition to the Cambridge Analytica scandal, Facebook is giving away bad times in the event of personal privacy violations in the customer's leaks at various times. Many of their advertisers demanded compensation, as well as terminated contracts. It is still unclear how law-abiding companies are looking at Facebook's new business plan over cryptocurrency practices that are out of control around the world.
Recently, investors have lost millions of cryptocurrency to hackers. There have also been allegations that cryptocurrencies are being used for money laundering, illicit drug trafficking. The European Parliament has also proposed to bring cryptocurrency under a policy. Non-existent cryptocurrency goes only to the Internet world. It has been an emerging market for over 25 years, in which Bitcoin is now known to many.
Cryptocurrency has no third party control. So no one can know to whom or who is giving this digital currency. Again, it can be traded with the identity secret. Cryptocurrency is banned in many countries because there is no opportunity for any government to intervene.
Guardian says the United States and the UK have already raised concerns over the arrival of Facebook in this virtual banking sector. In a letter to Mark Zuckerberg, Facebook's chief executive, the US Senate Committee on Banking, Housing and Urbanization has raised questions about the regulation of personal privacy and financial transactions.
