Page 52 - Payout Magazine Online Volume 10.01

Facebook’s Facebook recently revealed the plans it
Libra And What has for Libra; it’s new cryptocurrency
scheduled for a 2020 rollout. Here’s what you
It Means For need to know about Libra and Faceb
Cryptocurrency
What is Libra?
52 PAYOUTMAGAZINE
Libra is a cryptocurrency, which is the term
used for virtual currency that has no physical
counterpart in the real world. Facebook’s
vision for Libra is for it to become a standard
global currency for billions of people around
the globe.

Facebook has claimed that its goal is to
reach people who do not have access to
bank accounts or financial services. Libra will
be a convenient solution for them to store
funds and conduct online transactions.

In simple terms, Libra is a digital currency
people will be able to use to trade with others
and buy stuff.

Facebook is not going it alone with Libra,
as a few other Silicon Valley heavyweights
have teamed up with the social media giant.

The Libra Association has been created
specifically to govern Libra and includes
a Swiss group of 28 members, Calibra (a
Facebook subsidiary), Uber, PayPal, Visa,
Mastercard, and Spotify. It’s a veritable
smorgasbord of financial household names
which should help solidify Libra’s place in the
cryptocurrency market.

Despite the memberships of mega-
corporations, each valued at billions of dollars,
the Libra Association has been described by
Facebook as an independent, not-for-profit
organization based in Switzerland.

Why is Facebook Allowed to
Launch a Cryptocurrency?

Facebook has faced a lot of heat from the
courts over the last couple of years due to
antitrust concerns. Despite their claims that
they want to make the world a financially
more welcoming place for 1.7 billion people,
they are bound to face many regulatory
challenges. However, there is no specific
legislation in place which can prevent Libra
from becoming a reality.