Facebook is launching a brand new payments network that will be known as Libra. With over 2.3 billion Facebook users, the company is introducing a currency to nearly 1/3 of the world’s population. Huge tech giants including Mastercard, Visa, eBay, PayPal, Stripe, Spotify, Uber, Lyft will be adding to what is known as the Libra reserve. The Libra acts to bypass the US dollar and other cryptocurrencies. The global monetary system is coming under pressure in the digital currency age.
Fed’s Powell Tells Facebook to Pump Breaks on Libra
“In a Congressional committee meeting earlier this morning, Powell raised concerns about privacy, money laundering, consumer protection, financial stability — all issues the crypto community is still working through.”
The Block, at theblockcrytpo.com reports:
“Big takeaways from the report:
Facebook is planning to launch a full payments network (rather than just remittances) and in discussions with payment networks Visa and Mastercard, payments processors such as giant First Data as well as large e-commerce merchants to support the launch.
Facebook is seeking up to $1 billion in investments collectively from these firms in order to act as collateral to bolster and back a stablecoin that will be associated with the payments network.
A stablecoin will exist as the currency of the payments system in order to eliminate credit card fees for merchants as well as to avoid the volatility of other cryptocurrencies like bitcoin and ether.
The company is considering tying the coin to Facebook’s core ads engine, rewarding users for viewing ads and then purchasing goods, similar to how loyalty points rewards work.”
Libra to be Backed by Intrinsic Value
According to the Verge.com,
“The company has formed the nonprofit Libra Association with 27 other partners to oversee Libra and its development. The partnership includes venture capital firms, nonprofit organizations, crypto firms, and massive corporate financial, telecommunications, and technology service providers, including Coinbase, Mastercard, Visa, eBay, PayPal, Stripe, Spotify, Uber, Lyft, and Vodafone. Those organizations will also contribute to what is known as the Libra Reserve, the asset pool that will ensure every unit of Libra currency is backed by something of intrinsic value rather than by simple scarcity, as Bitcoin is.”
Challenges to Global Monetary System Coming
Mike Maloney explains in his latest video that China’s central bank is now developing its digital currency in response to Libra.
Maloney continues to predict that the world is about to embrace a new global monetary system. Mike points to stress fractures in the US dollar and what those in power may do to maintain their current influence. He invites viewers to watch 140 Years of History in 10 Minutes, a video he put out in 2013. Maloney continues to believe a massive wealth transfer is about to occur, and being in the right currencies will be everything.