And backing all this is The Libra Association, which Facebook says will be an independent, not-for-profit organisation. And it will allow people to send Libra back and forth on two of Facebook's core messaging apps - WhatsApp and Messenger.
The currency, which is still in the testing phase, is expected to launch in 2020. They hope it will not only power transactions between established consumers and businesses globally, but offer unbanked consumers access to financial services for the first time. In addition to the cryptocurrency, Facebook has launched Calibra, a separate subsidiary to manage the payments network.
Earlier this year, Facebook was said to have approached the Winklevoss twins and their cryptocurrency exchange, Gemini, about its efforts to develop Libra.
"Freedom, justice and money, which is exactly what we're trying to do here", he said.
Creating its own globe-spanning currency - one that could conceivably threaten banks, national currencies and the privacy of users - isn't likely to dampen regulators' interest in the social media giant. Google has been slapped with no less than three multi-billion dollar fines in anti-trust cases, and regulators in various countries aren't fans of Facebook in light of the recent scandals that plagued the social network.
Facebook Inc. (FB.O) shares on Tuesday erased an initial advance that came after the company unveiled plans for a new cryptocurrency, a move that analysts saw as a potentially major new profit stream. Those issues have led some government officials to call for Facebook to incur penalties, or be forcibly broken up.
A 3-D printed Facebook logo is seen in front of displayed binary code in this illustration picture, June 18, 2019.
Will Facebook use my transaction data to target ads?
Facebook is leaping into the world of cryptocurrency with its own digital money, created to let people save, send or spend money as easily as firing off text messages.
Cryptocurrencies are largely unregulated and investors have lost hundreds of millions through hacks, while the market faces money-laundering and terrorist financing allegations.
As stated previously, Facebook has collaborated with various financial institutions as co-founders for its crypto project, such as MasterCard, Visa, PayPal, Stripe, eBay, Spotify, Uber, Lyft, Vodafone Group, Andreessen Horowitz, Facebook, and more.
While the association has a total of 28 founding members now, Facebook is hoping that it will be able to reach 100 founding members before the cryptocurrency launches officially.
Each of those founding companies is paying at least $10 million into the currency's reserve.
Although Libra backers were hopeful about its prospects, some said they were aware consumer privacy concerns or regulatory barriers may prevent the project from succeeding. Facebook says that Calibra will not share account information or financial data with its servers or any third party without customer consent.