After months of anticipation, the designers of a new digital currency backed by Facebook said they plan to launch their product as early as next year.
First, to keep the price of Libra from fluctuating wildly, the value of the coin will be pegged to an as-yet-undisclosed number of world currencies, and backed with a giant reserve of cash.
"Multinational corporations such as Facebook must not be allowed to operate in a regulatory nirvana when introducing virtual currencies", said Ferber.
Coincidentally, the name Libra comes from the Roman measurement of weight - its why we measure pounds of weight in lbs.
"Given the company's troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action". "Just as people can use their phones to message friends anywhere in the world today, with Libra, the same can be done with money - instantly, securely and at a low cost", Facebook said in a Libra white paper. "The Libra Association is an independent, not-for-profit membership organization headquartered in Geneva, Switzerland", the whitepaper explained. Calibra, the company insists, will be a subsidiary of Facebook and a regulated financial service provider.
Facebook Inc., a centralized corporate giant with a history of customer data use controversies, is an unlikely candidate for bringing cryptocurrencies to the masses.
The California-based company has big aspirations for Libra, but consumer privacy concerns or regulatory barriers may present significant hurdles.
Others argue that Facebook is wise to relegate oversight of Libra to a consortium. It is "out of the question" that Libra become a "sovereign currency", le Maire told Europe 1.
And with Libra they wouldn't need a bank account - just a smartphone, and someplace to top off their Libra account with United States dollars. The association will act as a monetary authority for the digital currency. Facebook is taking the lead on building Libra and its underlying technology; its more than two dozen partners will help fund, build and govern the system. The alliance will create a new digital currency called Libra that's powered by blockchain technology and they plan to launch it in 2020.
Her comments came after Representative Patrick McHenry, the senior Republican on her panel, also sought a hearing on Facebook's new initiative. This means Libra could potentially, eventually, replace the U.S. dollar as the currency of choice for global reserves.
Without divulging any details about the members of Libra Association, Facebook said they include "geographically distributed and diverse" businesses and academic institutions.
It should be noted though, that despite claims that Libra will be a privacy-focused currency, there may be situations in which Calibra shares information with Facebook. There's a new programming language called Move that's optimized for secure smart contracts.
Libra's default setting will be to not share any information with Facebook, and the company is insistent that financial data won't be used to target ads at users.
"Facebook has data on billions of people and has repeatedly shown a disregardfor the protection and careful use of this data", Waters, a California Democrat, said in a statement.
Whether or not those promises mean anything after Facebook's numerous privacy scandals is ultimately up to each individual, but Facebook is trying to make it clear that it's taking privacy seriously with the roll out of Calibra and Libra.