Facebook, the social network with 2.4 billion users, is launching its own cryptocurrency: Libra. What are the main characteristics of this virtual currency, what differences with other cryptocurrencies, what risks threaten Libra? All our explanations on this new crypto-currency!
Libra: 1st virtual currency created by 28 international companies :
Facebook announced with great fanfare, last June, the launch of its cryptocurrency by 2020. Even if we suspected that Facebook had been preparing for a while now the creation of its own tokens, the announcement had the effect of a tidal wave. This is the first time that a group of companies has led this kind of initiative. If since the advent of cryptocurrencies, minting money is no longer the prerogative of States, this is the first time that a group of companies whose activity is not centered on the creation of a virtual currency, tackles such a project.
Indeed, 28 companies and NGOs, for 10 million dollars, joined the project. These companies are mostly American, but there are also many European and especially British companies. A French company (Iliad) is on the list, as well as an Argentinian company and a Hong Kong company. These companies come from different business sectors. There are of course payment service companies and online sales services, but also from the Telecom and cryptocurrency sector, investment funds and non-governmental organizations.
These companies will be responsible for the governance of the currency. The objective is to extend, initially, the number of companies to 100, then to open this project to all the companies which wish it, on the condition however of belonging to the prestigious Fortune 500 list, of invest $10 million in Libra Investment Tokens (each $10 million invested equals 1 vote). Facebook will therefore not manage Libra alone, which will be managed by a Geneva-based, non-profit foundation, of which Facebook will be only one of the partner organizations.