June 19, according to foreign media reports, Facebook announced Tuesday an ambitious plan, it plans to launch a global digital currency called Libra, which is part of the message to the company's expansion efforts in the field of digital pay once it bursts, triggering fears of privacy.
According to Facebook marketing materials and interviews with company executives, the company has with MasterCard, PayPal and Uber and other partners to build 28 new digital currency to establish a cooperative relationship, established a cooperative organization headquartered in Geneva, Libra Association, responsible for management The digital currency. There is no bank joined Libra Association.
To facilitate the transaction, Facebook also created a subsidiary Calibra. Calibra will provide e-wallet service for Libra users to store, transmit and consume digital currency. It is reported that, Calibra will connect to the instant messaging platform, Facebook Messenger and WhatsApp.
The entire system plans to launch in the first half of 2020.
Facebook executives, Libra and Libra and other team personnel-related companies have great expectations for the project. They hope that this will not only promote trade between mature consumers and businesses worldwide, and will be the first to provide financial services to consumers without bank accounts.
Facebook Libra also bet digital money from the company's other applications get more revenue.
Chairman of the House Financial Services Committee (House Financial Services Committee), Congresswoman Marcy Enwo Waters (Maxine Waters) Facebook executives called for congressional hearings and require the company to suspend the development of digital currency Libra until lawmakers and regulators review of the project's end.
Waters said in a statement:. "As Facebook announced plans to develop a new digital currency, it will continue to expand indefinitely, and spreading their tentacles the user's life."
Other global regulatory agencies, parliamentarians and government officials quickly issued a statement against Facebook's. French Finance Minister said he had asked the Group of Seven (G7) central bankers in mid-July before writing a report on the project.
A representative of Facebook said the company is looking forward to answer lawmakers' questions.
Before Tuesday officially announced the news, Facebook has since user data is handled properly, and resist intervention unfavorable during the US presidential election and met with strong opposition. These problems lead to some government officials called for Facebook to punish the company, or forced to split.
Libra digital currency plan Product Owner Kevin Weir (Kevin Weil) said, Facebook hopes to open their own plans, global regulators brought to the negotiating table.
He said, "This provides a basis for fruitful dialogue with our global regulatory agencies." "We are eager to do so."
Facebook digital currency project manager David Marcus (David Marcus) said, Libra name comes from the weight measurement of the Romans, Libra is the sign on behalf of justice and meaning in French is free.
"Freedom, justice and money, which is what we have to do," Marcus said in an interview.
The day up 0.1% Facebook shares closed.
Unregulated sector
Facebook is using the regulatory minimum of digital currency into the financial sector.
The most famous digital currency Bitcoin born in 2008, is an alternative to traditional currency. Since then, a number of countries in the process of continuing to explore the regulatory digital currency market, but digital currency trading is basically not subject to regulation.
At the same time, as prices tumble and hacker attacks on the transaction, Bitcoin investors lost hundreds of millions of dollars. The market also faces a large number of negative allegations of money laundering and terrorism financing.
But Facebook, as a touch billions of people around the world large technology companies in Silicon Valley, its status may help make this so far has been wandering in the legal boundaries of the legalization of the market.
Other members of the partner organizations Libra Association also includes Visa, Spotify, eBay and Vodafone, as well as Anderson Horowitz Fund (Andreessen Horowitz) and other venture capital firms.
Participants hope to have 100 members in the launch of Libra digital currency. Every company has a vote on major decisions, companies must invest at least $ 10 million to join Libra Association.
The group plans to raise funds through private placement a few months in the future. Facebook does not intend to continue to maintain its leading position in the digital currency of Libra after 2019.
Executive vice president of MasterCard is responsible for digital solutions 约恩兰伯特 (Jorn Lambert) said that although there are no major banks in the first batch of members, but has been engaged in a dialogue and discussions with the big banks.
He said large banks before deciding whether to join, regulators and consumers are waiting to see the reaction to the project.
Some proponents of digital currency Libra acknowledged that consumer concerns about privacy or regulatory aspects on the issue of the boycott of the project may hinder their goals to achieve, and details some of the precautions they are taking.
For example, Facebook Calibra newly formed subsidiary banks plan to use a common authentication and anti-fraud processes, customers want to register for compliance checking.
Facebook said, Calibra subsidiary only in the case of consent, or if necessary "limited circumstances", with Facebook or external parties will share customer data. This may include law enforcement, public safety or general system functions.
PayPal chief technology officer 斯里希瓦南 up (Sri Shivananda) said on obtaining the necessary regulatory approval and consumer acceptance, the project is still in the "very, very early stage."
In addition, MasterCard Lambert said that if the project has been too much resistance, "we may not start."
Please indicate the source from Facebook ambitious digital currency, but privacy and regulatory issues are
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