Facebook announced that it soon be launching its own stable coin, based on the technology of blockchain that will be the more competitive answer to the growing demand of in-app payment system such as WeChat and Alipay’s payment services. The question to the cryptocurrency industry following the development of ambitious Libra project is what actually would make it different from other cryptocurrencies that are already present or failed. Libra could meet certain requirement such as lower cost of global payment rather than becoming a global financial experience.
The Asian consumer payment giant Alibaba parent of Alipay and Tencent parent of WeChat added that they wouldn’t be getting in the race of development of cryptocurrency. Most of the financial industry has been upbeat after the news of Facebook’s cryptocurrency, the world’s fifth largest company in terms of the market capitalization. Facebook added major digital payment solutions such as Visa, PayPal, Uber, and eBay in the blockchain wagon. The currency is expected to be launched by 2020 and will be included in the current options, designed to maintain liquidity and inflation it will be controlled by the Libra Association. Calibra, a Facebook subsidiary plans to build the digital wallet that will exist along with the Facebook messenger and WhatsApp to make people send money to family and friends through such apps.
The company has however been said to wait until the US Congress has examined the Project, according to the chairwomen of the House Financial Services Committee. Many of Congress representatives have cited that given the companies troubled past with security and user privacy they have requested that Facebook agree to the delay. The company’s history with controversies has cited many governments flagging the launch of cryptocurrency in their market. Facebook responded by saying that we will be looking forward to respond to policymakers questions as the process moves forward.