“Facebook” (Facebook) announced the creation of a new global digital currency backed assets. Weight plans the world’s largest social network to market financial services gives the support of nearly three dozen companies from the “Visa” (by Visa) and MasterCard (Mastercard) to “lift” (Lyft) and “Spotify” (Spotify).
Views new currency under the name of Libra in “Facebook” the most daring: all over the world she will be able to use up to 1.7 billion people without Bank accounts to instantly and almost free to transfer money from mobile phones.
At the auction before the official opening of the exchange the shares of Facebook rose by 1.79% to 192,40 dollars. However, the price of bitcoin, the most famous of cryptocurrencies, the announcement did not shaken — she froze at around 9 221 dollar, and this is the highest figure for the year.
Although traditional banks, technology giants and market regulators in relation to digital currencies have taken a wait and see position, Facebook on Tuesday launched a public relations campaign to convince customers to switch to payments in Libra. The company says that future currency safe store of value.
“The Internet has given all democratic access to the world of information and free communication, but the money remains the same,” said David Marcus (David Marcus), the former President of PayPal (PayPal). He joined Facebook in 2014 and the project was managed by Libra.
At the moment the currency was supported and promised to integrate their services with 28 companies — including dealing with payments, Internet Commerce and venture capital. Some joined the project only recently — in particular, the “PayPal” said that talks are only “a few weeks” — but Facebook hopes that, even before the launch of the currency will support to hundreds of companies.
It is expected that each co-founder of the Association of Libra will make a minimum of $ 10 million to start the project.
Libra will be provided a currency basket and assets around the world. Even without a rigid exchange rate relative to traditional currencies, whether the dollar or the Euro, it will not affect as strong of vibrations as cryptocurrencies like bitcoin.
“Apple” (Apple), Google (Google), Amazon (Amazon) and Microsoft (Microsoft) the project is not yet supported. Big banks are reluctant to enter the starting lineup because of doubts about the regulation and a number of logistics issues that may prevent the adoption of decisions, as reported by a few top leaders.
Campaign “Facebook” the most important of the hitherto taken steps to implement technology the block chain, which allows you to produce a money independent of a Central authority. Previously, this technology was used in hundreds of digital currencies, including bitcoin, which has turned ten years old.
“We believe that people will increasingly trust in decentralized forms of governance”, the statement reads “Facebook” and partners.
“This will help bring the cryptocurrency to the hundreds of millions of people,” explains Jim Migdal (Migdal Jim), head of business development at bitcoin exchange “of Kolbas” (Coinbase).
If successful, the project will dramatically change a number of financial sectors, get rid of intermediaries, and will take away business from retail banks and companies in the financial technology sector — especially those that spetsializiruyutsya on the transfer of payments abroad.
Jorn Lambert (Jorn Lambert), Executive Vice President, digital solutions at MasterCard (Mastercard), says that becomesone payments to his business is not threatened. “They are not canceling our doing, but only complement it. It’s not a zero-sum game. Still 85% of all payments are made in cash”.
Yet, it is unclear whether Libra to overcome steep obstacles, to gain strength, to overcome regulators like the securities and exchange Commission and to enlist the support of the financial services industry or will encounter strong resistance. The Central banks have questioned the financial stability of cryptocurrencies, running companies.
“We see obstacles for scaling, we see barriers to implementation, and looking at it all, we decided not to participate,” — said the head of the billing Department of one of the world Bank.
He also predicted that Facebook would struggle to convey the complexity of the currency to buyers and sellers. In addition, this would entail major problems from the point of view of regulation. “The reputation of “Facebook” in this respect, and so far is not perfect.”
For managing digital wallet that will be integrated into the family of apps, Facebook will create a separate division — the “Caliber.” As stated by the company, the data collected by “Calibri”, will not be used for advertising or passed on to third parties or to Facebook without the client’s consent.
For identification procedures will require an official ID. The company added that a suspicious transaction will be monitored by special software.
Recently Facebook has incurred the wrath of the public and was under the scrutiny of regulators because of doubts about data privacy and allegations of failing to eradicate abuse on its platform and alleged antitrust violations to support growth.
Implementing it in your application payment system and electronic Commerce and reducing the number of operations, “Facebook” expects to obtain new sources of income in addition to advertising.
Analysts believe that the company is “APE” for the so-called “superpriority” like Chinese “Wichita” (WeChat), where users can communicate, shop online and even order a taxi within the same platform.
Non-profit organization “Positive money” (Positive Money) plans Facebook criticized. “Our money is increasingly falling into the hands of a small number of banks and payment companies, and we must strive to unaccountable corporate interests prevailed as rarely as possible. Plans “Facebook” threatened alarming consequences for privacy and economic power,” — said the head of the policy division David Clarke (David Clarke).
In writing the article was attended by Laura Noonan (Laura Noonan), Robert Armstrong (Robert Armstrong) and Martin Coulter (Martin, Coulter).
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