Facebook, Backed By 28 Companies, Announces Libra Cryptocurrency; Aims To Squeeze Revenue From Messaging Apps

While India has continued to hold a strong stand against cryptocurrency, Facebook has unveiled plans to move into e-commerce and global payments. The social media giants have linked with 28 partners in a Geneva-based entity known as Libra Association to govern its new digital coin set to launch in 2020, NDTV Gadgets reports.

The social media platform has also created a subsidiary called Calibra to offer digital wallets to save, send and spend Libras. The Calibra will be connected to messaging platforms Messenger and WhatsApp.

Partners in this ambitious project include Mastercard, Visa, Spotify Technology SA, PayPal Holdings, eBay, Uber Technologies, Vodafone Group and venture capital firm Andreessen Horowitz.

The biggest challenge for Facebook would be consumer privacy concerns and regulatory barriers as it aims to squeeze revenue from its messaging services via transactions and payments, a step already implemented by Chinese social apps like WeChat.