The Week UK: Cryptocurrencies Libra coin: why Facebook’s cryptocurrency is no bitcoin rival

The Week UK 
Cryptocurrencies
Libra coin: why Facebook’s cryptocurrency is no bitcoin rival
Jun 12, 2019

Social media giant is about to launch its very own virtual currency - here’s everything we know about it
                        
   

Lionel Bonaventura/AFP/Getty Images

Facebook looks like being the next major company to release its own cryptocurrency, with reports suggesting its so-called Libra coin will launch in less than a week.

See related
Why you may not actually own your Bitcoin
Why has J.P. Morgan launched a cryptocurrency?

The tech giant has long been rumoured to be developing its own virtual currency, with Bloomberg reporting in December that Facebook was planning to allow users to transfer money over WhatsApp.

It appears the rumours may be true as sources told TechCrunch that the digital coin will be unveiled in a matter of days and serve as a safe way to transfer money over Facebook’s chat apps.

With Libra’s announcement seemingly on the horizon, here’s what we know about the virtual currency:
When does it come out?

A source familiar with the project told TechCrunch that the Libra coin will be announced on 18 June, along with a white paper explaining how the cryptocurrency works.

Another insider claims that the virtual coin won’t be available to the public until 2020, when a more “formal” launch will take place, the tech site says.
How is it different to bitcoin?

While Libra and bitcoin both fall under the cryptocurrency umbrella, they serve different purposes in the wider market.

Libra, which is also referred to as GlobalCoin, will be “pegged to a basket of currencies”, such as the dollar and the euro, to prevent prices from escalating to the heady heights of bitcoin and Ethereum, The Independent reports.

Initially, the virtual currency will be available only through Facebook’s chat apps, including WhatsApp, Facebook Messenger and the chat section of Instagram, the online news site says.

However, The Verge says that Facebook plans to install physical cashpoints for people to manage their Libra coins while out and about. It’s also rumoured that Facebook will offer “benefits” to shopping outlets that accept the company’s cryptocurrency as payment.

By launching a bespoke and highly secure virtual currency, Facebook is essentially creating its own shopping ecosystem where users can buy and sell products on its platforms without needing to go through web payment systems such as PayPal.

Bitcoin, on the other hand, was designed so that people could store and manage their money without the need of going through a bank or larger corporation.

As the cryptocurrency isn’t pegged to a real-world currency, it’s value is far more volatile than traditional money.

There are a limited selection of outlets that accept bitcoin as a form of payment, such as independent coffee shops and restaurants, but the cryptocurrency is primarily used as a digital asset to invest in.
Can anyone buy Libra?

Sort of. Facebook users will be able to swap their real-world money for Libra coins, in a similar fashion to exchanging money for foreign currency.

As the Libra is pegged to a real-world currency, it doesn’t offer the same level of investment opportunity - or risk - as a more conventional cryptocurrency such as bitcoin or Ethereum.

Read more: Technology
Facebook
Bitcoin
Ethereum
Economy
You are here:

    HomeCryptocurrenciesLibra coin: why Facebook’s cryptocurrency is no bitcoin rival

Related Articles

    E3
    E3 2019
    The best games announced at E3 2019
    Review
    Best bean-to-cup coffee machines 2019
    Google Pixel 4
    Smartphones
    Google Pixel 4: first images of new smartphones revealed
    One-Minute Read
    Flying taxi service to trial in Melbourne
    Facebook crypto
    Cryptocurrencies
    Why Facebook’s cryptocurrency is no bitcoin rival
    Nintendo Direct 2019
    E3 2019
    E3 Nintendo Direct: Zelda, Smash Bros. and other best games
    Watch Dogs Legion
    E3 2019
    How Brexit shaped dystopian London in Watch Dogs: Legion
    Project Scarlett
    E3 2019
    Xbox Project Scarlett: the confirmed and unconfirmed details

Find Out How
With The Week Magazine
YES
Portfolio

The experts' guide to good living

    Is Leonardo da Vinci overrated?
    Chef Merlin Labron-Johnson on the Golden Age of Travel
    Panerai yacht lands in St Katharine Docks

Read more
Popular

    The next UK prime minister: the latest polls, odds and vote results
    UK News
    2019 sports event calendar and TV guide: what’s on in June?
    Sport
    Boris Johnson’s biggest gaffes
    World News
    Tory leadership race: who’s still in the running?
    UK News
    Today’s back pages: Paul Pogba wants out of Man Utd and Tyson Fury stars in stripes
    Sport

Trending Topics

    Donald Trump
    Brexit
    House prices
    Cultural appropriation
    Kensington Palace
    Islamic State

Daily Briefing

Ten things you need to know today

    Tory leadership rivals debate without Johnson
    Four murders in London in four days
    Hong Kong protester Wong calls for Lam to quit

Read more
Our Latest Offers, Competitions and Events

    Our latest offers and competitions
    Foraging masterclass and lunch with Masterchef winner
    Outstanding wines that won't break the bank

FIND OUT MORE
Back to top

    FacebookTwitter

    News
    Sport
    Business
    Technology
    Cars
    Offers
    Podcast
    Portfolio
    Subscriptions

    The Week US
    Email newsletter
    Privacy Policy
    Cookie Policy
    RSS
    Sitemap
    Contact us
    Authors
    About us
    Privacy Preferences

© Copyright The Week Ltd which is a subsidiary of Dennis Publishing Limited.
The Week incorporates The First Post. The Week™ and The First Post™ are trademarks of Felix Dennis.

    Felix DennisJobsMedia InformationSubscription EnquiresBooksAppsYour Online Choices