In March of 2019, Facebook announced a plan to create a cryptocurrency called Libra that is primarily used as a payment system internationally. It would be a simple way for people around the world to exchange money without the added conversion and services fees that banks ask of their customers. Libra would not actually be a cryptocurrency but rather it would serve as a monetary authority for cryptocurrency and help individuals without banks or stable currencies to exchange money safely.
Zuckerberg acknowledged that he plans to make Libra a stable currency, unlike other cryptocurrencies the swing wildly depending on speculation. This is achieved by using a bucket of assets mostly made up of bank deposits and government securities much like the U.S. dollar or the euro. This would separate Libra significantly from other forms of cryptocurrency and possibly make it the leading form of exchange online.
Facebook would benefit greatly from entering to market of sending money online. They claim that their product will simplify the entire process which probably attracts new people to the network. By adding new possibilities within their product, they are providing consumers with more incentive to use their product. Also, if more people used Libra, the costs of advertising would rise benefitting the company further.
Libra is criticized by many due to its association with Facebook and its recent scandals with security. Government officials and lawyers are very speculative of this new form of cryptocurrency many times try to discredit it as a whole. Despite the controversy, Libra is an innovative idea that may change the way many people exchange and send money in the following years.
https://www.cnet.com/news/heres-what-you-need-to-know-about-facebooks-controversial-libra-cryptocurrency/
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