Will facebook crypto hurt bitcoin

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.

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3 tough challenges Facebook must solve for its Libra cryptocurrency

Facebook still aims to launch its Libra digital currency next year, its executive overseeing the project told Swiss newspaper NZZ, as the company presses ahead despite authorities around the world pouring cold water on the plans. Since the US tech company unveiled its plans in June, its proposed cryptocurrency has met with regulatory and political scepticism, with France and Germany pledging to block Libra from operating in Europe.

Read more: What is Facebook's new digital currency Libra? Euronews explains. The social media giant's project, announced as it expands into e-commerce, is a high-profile attempt to drag cryptocurrencies into the mainstream.

Libra will be backed by a reserve of real-world assets, including bank deposits and short-term government securities, and overseen by a member organisation. The structure is intended to foster trust and stabilise the price volatility that plagues cryptocurrencies and renders them impractical for commerce and payments. Marcus said it was unlikely Libra coins would become a means of payment for regular real-world transactions in countries like Switzerland, Germany or France, but would rather be used for cross-border payments or for settling very small sums.

Initially, he added, he expected user acceptance to be a bigger problem than regulatory issues. Read more: France wants to block Facebook's new Libra cryptocurrency from Europe. Authorities' concerns have centred on the project's potential to destabilise the global financial system, interfere with sovereign monetary policy and harm privacy as well as its potential for use in money laundering.

Marcus said he did not believe the project would interfere with monetary policy, since it would not be creating any new money and would not influence interest rates or yields. Facebook's Calibra digital wallet, which will allow consumers and vendors to hold and transact the digital currency, would be made available everywhere that it is able to meet regulatory requirements, Marcus said.

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Why Cryptocurrency Is Crazy—Like a Fox

Meta, formerly Facebook Inc, first unveiled plans for Diem, known as Libra earlier, in June , as part of an effort to expand beyond social networking into e-commerce and global payments. The project immediately ran into fierce opposition from policymakers globally, who worried it could erode their control over the money system, enable crime, and harm users' privacy. In the quest for regulatory approvals, Facebook then renamed its digital coin to 'Diem' and scaled down its global ambition to focus on the United States by announcing the launch of a U. A much recent blow came when Facebook's financial technology executive David Marcus, who was overseeing its efforts to develop Diem, left the company to start working on something new. This story has been published from a wire agency feed without modifications to the text.

The new rules, outlined in a manual published by Thailand's revenue department, will also allow traders to offset their annual losses against.

Facebook's cryptocurrency Libra unveiled

This future is a lot closer than you think — just a few months away. Then, a new player will emerge and try to change the game. Considering there are more than 2. Facebook joined forces with 27 organizations to introduce the new cryptocurrency to the world in One of their objectives is to make it a new medium of payment for everyone, including the 1. Only time will tell, but this article will shine some light on the new Facebook cryptocurrency and its inner workings, so you can form an opinion about it. Mark Zuckerberg wants to make financial transactions as easy as sending a message or a picture.

Facebook's Libra cryptocurrency - key aims and the future regulatory landscape

will facebook crypto hurt bitcoin

Bobby Allyn. Coinbase on Wednesday became the first major cryptocurrency company to be publicly traded on the Nasdaq. Coinbase, a San Francisco startup that allows people to buy and sell digital currency, became the first major cryptocurrency company to go public when it made its stock market debut on Wednesday. That's about what Facebook was worth when it had its initial public offering in

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Facebook’s cryptocurrency venture to wind down, sell tech assets: report

Mark Zuckerberg probably is looking at the whole cryptocurrency wars and thinking to himself why he isn't getting a slice of that pie. Over the past three years, the Facebook creator had been trying to come forth with his own cryptocurrency but apparently his plans are failing miserably. The name of the project is Facebook Diem , and it had the potential on paper to truly get traction in the world of cryptocurrencies. Their intention was to create a cryptocurrency names Libra stablecoin that was announced all the way back in June 18, under the motto, 'move fast, break things'. What broke is the entire initiative as the entire project crashed completely this week.

Will Facebook's Libra Be an On-Ramp or Dead End for Crypto?

At least three early backers of Libra , a cryptocurrency Facebook unveiled plans for earlier this year, are discussing ways to distance themselves from the project , the Financial Times reported Thursday. The move stems from intensifying regulatory scrutiny of the digital currency, FT said. Facebook and 27 partners unveiled plans for Libra in June. Since then, the social media giant has faced pushback from lawmakers who worry that the cryptocurrency will be abused by criminals and that it could hurt the US dollar. The EU is also reportedly investigating whether the new digital currency could unfairly shut out rivals. The social network has said it won't launch the cryptocurrency until all the concerns lawmakers have are addressed. According to Facebook's plans, Libra will launch in the first half of , and the company has created a group called the Libra Association to govern the cryptocurrency. Libra will be pegged to a basket of assets so its value won't swing wildly like other cryptocurrencies such as bitcoin and ethereum.

At least three early backers of Libra, a cryptocurrency Facebook the cryptocurrency will be abused by criminals and that it could hurt.

If you were worried about your savings at a time of financial uncertainty—say, the looming threat of inflation—would you hand your money over to Elon Musk? True, the Tesla founder is a brilliant investor and worth a mint, but he is also volatility itself, prone to strange, sudden shifts of opinion. And the fact is if, in recent weeks, you put your money into Bitcoin, a cryptocurrency, you were effectively putting your money into Musk, whose many whimsical tweets and off-handed remarks about cryptocurrencies like Bitcoin—in which he is a major investor—have helped send them seesawing in value. That, in turn, is proof of what some financial authorities have long been saying: When it comes to being a stable hedge against inflation, Bitcoin and other cryptocurrencies are about as safe a bet as going to your local convenience store and buying a lottery ticket.

VentureBeat Homepage. Join today's leading executives online at the Data Summit on March 9th. Register here. Both Facebook and cryptocurrencies have had a bad year. Could they do better, together, in ? Facebook apparently thinks so.

With Facebook announcing Libra-a new global cryptocurrency and payments system-and its governing body, the Libra Association, uncertainty has arisen over its place in the global economic landscape and the regulatory path ahead.

Facebook's Libra cryptocurrency must not go ahead until the firm proves it is safe and secure, according to a report by the G7 group seen by the BBC. In a blow to the social media giant, the world's biggest economies warned cryptocurrencies such as Libra pose a risk to the global financial system. The draft report outlines nine major risks posed by such digital currencies. It warns that even if Libra's backers address concerns, the project may not get approval from regulators. The warning comes just days after payments giants Mastercard and Visa pulled out of the Libra project, citing regulatory uncertainty. The G7 taskforce that produced the report includes senior officials from central banks, the International Monetary Fund IMF and the Financial Stability Board, which coordinates rules for the G20 economies.

Government Has Taken Notice. Here's What Investors Should Know. Ethereum Just Hit a 6-Month Low. Upgrade Bitcoin Rewards Card: 1.

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