Facebook on June 18 announced plans to launch a cryptocurrency called Libra to expand into e-commerce and global payments. The digital money will be a so-called stablecoin linked to a basket of major fiat currencies and backed by a reserve invested in bank deposits and government securities denominated in those currencies.
The social network has enlisted 27 partners in a Geneva-based entity that will manage and govern the currency. They include credit-card payments companies Visa and MasterCard, ride-hailing app Uber Technologies, music-streaming service Spotify Technology, and venture capital firm Andreessen Horowitz.
Facebook is creating a subsidiary called Calibra to offer digital wallets to save, send and spend Libra. The wallets will be connected to the company’s Messenger and WhatsApp messaging platforms.