Libra facebook vs bitcoin

Facebook, Inc. FB is hoping to launch its cryptocurrency next year. David Marcus, head of Facebook Financial, or F2, told audiences at the Singapore FinTech festival that he hoped the company could participate in changing the financial services industry by launching Diem, Facebook's proposed digital currency for use on its social network, and Novi, the accompanying wallet for its Libra blockchain , on its platform. The platform's launch is contingent on Facebook obtaining the necessary regulatory approvals to operate across multiple jurisdictions.

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Content:

• Facebook’s Cryptocurrency [Libra Explained]
• What is Libra? Facebook has cryptocurrency?
• By Ben Thompson
• Facebook is shifting its Libra cryptocurrency plans after intense regulatory pressure
• Facebook Steals Another Crypto Idea for Its Nonsensical Rebrand
• The Trouble Starts If Facebook’s New Currency Succeeds
• Will Facebook Libra Replace Bitcoin?
• Facebook’s Cryptocurrency Libra: What is it and Can it Fly?
• Confused by Libra and Calibra? Facebook is trying to change that

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Facebook’s Cryptocurrency [Libra Explained]

Rare was the occasion when President Trump and Rep. Maxine Waters could agree on anything, but Facebook has a knack of bringing people together. The matter at hand was Libra, a new digital currency designed for use on the social network.

Trump was sharper. It was a PR disaster for Facebook. In the preceding year, the company had been quietly recruiting dozens of international companies to embark on the Libra project, an attempt to create the first cryptocurrency with truly global reach. Facebook had been embroiled in a series of crises — from data privacy scandals to a putative role in Russian election manipulation — that made a foray into finance unappealing.

Moreover, instead of pegging the stablecoin against a basket of global currencies, it would be linked to the dollar alone, while its operational headquarters were moved from Switzerland — hardly known for its financial transparency — to the US.

The question of whether those tokens are sufficiently collateralised, however, has sufficiently worried financial watchdogs to the point of contemplating new and rigorous regulatory frameworks for how stablecoins should operate. That can only come through new national and international legal frameworks, he says, above and beyond the patchwork of state-level licenses currently governing these products.

In the 19 th century, state laws in the US allowed regional banks to issue their own form of private currency, provided it could be exchanged one-on-one with state bonds. But this rule was only enforceable inside the state where the note had been issued. According to economic historians Gary B. Gorton and Jeffery Y. These proto-stablecoins were eventually rendered extinct by the National Banking Act of , which placed heavy taxes on notes issued by private banks. The invention of Bitcoin almost a century and a half later, however, saw the emergence of a new, parallel universe of cryptocurrencies.

Pegged to the US dollar, it afforded cryptocurrency users a safe way of redeeming their earnings from Bitcoin or Ether by converting it first into USDT, and then into dollars. This, essentially, is also the premise underlying Diem. Essentially, virtual life becomes real life. Making the social network an easy place to conduct financial transactions is likely to see it retain more users, and attract millions more, explains Professor Alexander Lipton.

While an official launch for the currency was trailed for later this year, Facebook has so far confined itself to facilitating digital payments via its Novi wallet. Even then, only a select number of users living in the US and Guatemala are permitted to do so, with all transactions being made using the Paxos stablecoin and not Diem, as many anticipated.

This may be an especially shrewd position in the current moment. Recent months have seen financial watchdogs grow increasingly anxious that the stablecoin market is much less sound than its name suggests. Another issue is the technical resilience of stablecoins, most of which operate on decentralised blockchains. These bulwarks against fraud and mismanagement are few and far between in the world of stablecoins, says Massad.

As such, the risk of a run on Tether or other stablecoins is very real. The US Federal Reserve and other international financial watchdogs have been keeping a laser focus on the volatility and collateralisation of stablecoins in recent months.

Does this mean that Diem is doomed to suffer the same fate as its Victorian antecedents? Not necessarily, says Massad. Lipton remains sceptical. Some speculate that regulating stablecoins will mark the start of a much wider intervention by financial watchdogs into cryptocurrencies generally. Others, meanwhile, wonder whether stablecoins can coexist with government experiments with central bank digital currencies CBDCs.

On a more basic level, the existence of stablecoins challenges the monopoly rights of nation-states in the issuance of currency, a challenge that could become intolerable if these tokens continue to grow. For Hileman, these discussions allude to a much larger debate about the functionality of money itself, triggered by the dawn of cryptocurrencies in the late s. Both stablecoins and CBDCs offer unprecedented opportunities for the state and private companies alike to institute safeguards against money laundering and other financial crimes.

Attempts to thrash out the appropriate line between oversight and privacy will continue to inform the debate around stablecoins for decades to come. Join Our Newsletter Want more on technology leadership? Sign up for Tech Monitor's weekly newsletter, Changelog, for the latest insight and analysis delivered straight to your inbox.

White papers Home About us Contact us Newsletter. White papers from our partners. Dell Technologies. Make Artificial Intelligence Real. Hybrid Workforce Brochure. While Libra foundered, another stablecoin seized the limelight. Hot topics Big Tech is coming for the weather. Bigger and more business-savvy: How ransomware will evolve in The technology industry is dragging its heels on digital inclusion. Monitor websites in our network Capital Monitor.

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What is Libra? Facebook has cryptocurrency?

Originally launched as Libra and later renamed as the Diem Association, the cryptocurrency initiative "is weighing a sale of its assets as a way to return capital to its investor members," Fortune reported on Tuesday, citing people familiar with the matter. Diem is reportedly in discussions with investment bankers about "how best to sell its intellectual property and find a new home for the engineers who developed the technology". The association apparently made an arrangement with Silvergate Capital Corp to issue Diem digital token, but "resistance from the US Federal Reserve dealt the effort a final blow". The Diem Association as well as Meta didn't immediately respond to the report. Facing regulatory backlash, the Libra Association in December decided to change its name to Diem Association in a bid to reinforce its organisational independence. The Diem Association Diem means day in Latin also had its subsidiary called Diem Networks to serve as the payment system operator.

By Ben Thompson

Facebook has announced it will launch a new digital currency called Libra in What implications might this have for the ability of national governments to control the monetary system? Possibly none. As discussed below, Libra faces considerable regulatory and political headwinds. There is, furthermore, a history of attempts to launch alternative currencies and payments systems that have failed, from Mondex and Digicash in the s to Bitcoin and other cryptocurrencies more recently. Even Facebook itself had launched Facebook Credits in before abandoning it in But this time it could be different. Facebook has very deep pockets and claims to have over 2 billion monthly users. Furthermore, it is not only Facebook backing Libra. According to the white paper released by the Association, it is planned to have around a hundred members by the time Libra becomes operational.

Facebook is shifting its Libra cryptocurrency plans after intense regulatory pressure

Facebook, the largest social network in the world, stunned the world earlier this year with the announcement of its own cryptocurrency, Libra. The launch has raised questions about the difference between Libra and existing cryptocurrencies, as well as the implications of private companies competing with sovereign countries in issuing currencies. Unlike Bitcoin , which has neither an owner nor a controlling body, Libra will be governed by a Swiss foundation comprised of several members that are well-established brands, including Uber, Visa and PayPal. Libra operates within a much more controlled environment relative to many other cryptos like Bitcoin and Ether.

Facebook Steals Another Crypto Idea for Its Nonsensical Rebrand

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The Trouble Starts If Facebook’s New Currency Succeeds

Facebook has announced that it's launching its own cryptocurrency next year, leaving many to wonder how the social media giant's offering, Libra, will differ from Bitcoin. Bitcoin has been mostly used for investments, while Facebook intends for Libra to be used for everyday transactions like purchases and paying bills. Libra, on the other hand, will be subjected to a governing body and administered by a Swiss-based nonprofit called The Libra Association. It will also be backed by a basket of global currencies or other investments, so its value should hold relatively steady. Facebook's cryptocurrency will be accessed through Calibra, Facebook's digital wallet which will also launch next year, and will operate like Apple Pay or Amazon Pay. However, Calibra will be connected through the Facebook family of apps, including WhatsApp, Messenger and a standalone app. Because it's meant to process payments, Libra is supposed to have a faster transaction speed than other cryptocurrency.

Will Facebook Libra Replace Bitcoin?

Governments and regulators linked arms to repel a perceived threat to monetary sovereignty, financial stability and data privacy. The more Mark Zuckerberg tried to reassure politicians by talking up financial inclusion and innovation, the more he came across like a tobacco boss denying cigarettes are addictive. There have been a few changes: Libra is now called Diem — as in Carpe — and its membership council is headed by Stuart Levey, whose stints at the U. The biggest concession to regulators is that Facebook will no longer create a single global currency.

Facebook’s Cryptocurrency Libra: What is it and Can it Fly?

RELATED VIDEO: Alexandria Ocasio-Cortez Grills Facebook Official on Cryptocurrency Libra - NowThis

Facebook has just released the first description of its planned new cryptocurrency, the Libra, that has been the subject of much discussion and speculation. One of the points that Facebook is stressing, however, is that despite using the Libra for transactions on Facebook, the Libra will not belong to Facebook but to the Libra Association. They have released a white paper which describes their intentions for the rollout of Libra in the first half of Many people have been comparing the new cryptocurrency with Bitcoin, and thinking that the Libra will have a lot in common with Bitcoin.

Confused by Libra and Calibra? Facebook is trying to change that

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Facebook officially introduced its cryptocurrency to the world this week. Stablecoins are cryptocurrencies designed to maintain a single market price. Differing from bitcoin, whose value is based on scarcity of available bitcoins, stablecoin value is tied to Fiat currencies or other assets such as commodities, other cryptocurrencies, or other crypto-collateralized or algorithm-backed non-collateralized assets. Because of this anchor, stablecoin usage in commercial transactions has increased in recent years, as has holding stablecoins for treasury or investment purposes.