Libra: the world’s new currency?

FILE PHOTO: Representations of virtual currency are displayed in front of the Libra logo in this illustration picture, June 21, 2019. REUTERS/Dado Ruvic/Illustration/File Photo

Only 1 billion of the 4 billion people across the world that own smartphones have access to digital credit cards and are able to utilise smartphone payments. Filling this gap would be commercially significant and advantageous for Facebook, but what does this mean for you?

Besides the benefits of increased trade and convenient digital wallet apps, there are some things that might be concerning.

Legislators around the world are concerned about Libra’s potential impact on both financial stability as well as privacy with Facebook’s connection to the project. While Libra has been created as an independent organisation consisting of 28 founding member organisations, Facebook’s history with privacy violations is concerning. This makes it difficult to trust their stewardship of a project that would not only be the largest cryptocurrency but would be large enough to challenge government-backed currencies and threaten the stability of financial systems.

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