Facebook has announced its own cryptocurrency, Libra, which is set to launch in 2020.
The new Libra will act just like a real currency, letting users buy products and services with tokens that are backed by real money reserves.
This means the currency won’t be speculative, like bitcoin and other cryptocurrencies, but will act more like a regular currency, with a real intrinsic value.
Facebook users will be able to Libra to pay for products or services using commission-free Messages. In addition, Libra can be used by anyone with a credit card or other financial service.
Importantly, Libra won’t be controlled by Facebook but by a third party non-profit organisation that counts Mastercard, Visa, eBay, PayPal, Stripe, Uber and Lyft among its members.
Libra will run from a wallet app, Calibra, embedded in Messenger, Instagram and WhatsApp. It will also interoperate with other wallets. An API (application programming interface) will let developers embed Libra into their own apps.