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What the New Facebook Cryptocurrency Means - Page 2

Company announces Libra, which will be out next year
By John Johnson,  Newser Staff
Posted Jun 18, 2019 10:35 AM CDT

  • Winklevii: Remember the Winklevoss twins, Zuckerberg's rivals from the early days of Facebook? They're now deeply invested in Gemini, a cryptocurrency exchange of their own, but they tell CBS News they're not worried about Libra. "There's so much pie to grow, I mean, at this point, we need to be frenemies," says Cameron. In fact, the Financial Times reports that Zuckerberg held talks with the twins about Libra.
  • More stable? Libra "will be pegged to a basket of government-issued currencies" to help keep it stable, per the Wall Street Journal. Also on the credibility front, those who use Calibra would likely have to show a government ID, such as a driver's license, to acquire Libra. That could reduce its use for shady, black-market transactions. Each digital wallet, however, could set up its own verification guidelines.
  • Concerns: The big one is privacy, given that Facebook is involved, notes a separate New York Times story. However, Facebook won't actually be running the currency. Instead, a Swiss nonprofit called the Libra Association will govern the coin's use, and Facebook (through its Calibra subsidiary) will have a single vote like the other members. The group's white paper is here.
  • Quick take: "This is not bitcoin," observes Kia Kokalitcheva at Axios. "Unlike the pioneering cryptocurrency and many of the other digital-token experiments out there, the goal here is not to supplant the traditional financial system but rather to extend it to serve people without access to conventional banking or stable ... currency."
  • Rising tide: Despite the this-is-not-bitcoin sentiment, crypto believers point to this mainstream launch as proof that the bedrock blockchain technology is useful. In fact, bitcoin has been surging again in the last week or so, to above $9,000, as news of Libra has been dribbling out.
(Read more cryptocurrency stories.)

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