Facebook unveils new digital currency, Libra

Unique Twitter accounts tweeting about Bitcoin

Unique Twitter accounts tweeting about Bitcoin

The new cryptocurrency is developed collaboration with top companies such as Visa, MasterCard, PayPal, eBay, Lyft and, Uber. The digital wallet will let users send and receive Libra for a low or no cost.

Just hours after Facebook announced its new Libra crypto-currency project, United States federal lawmakers issued warnings to the social media platform, requesting the project be put on ice until lawmakers have had a chance to review it. According to BitzArena, French minister Bruno Le Maire said that it is "impossible" for Libra to become a sovereign currency.

Before Tuesday's announcement, Facebook was already facing significant backlash over mishandling user data and not doing enough to prevent Russian interference in the 2016 US presidential election. Here's what you need to know.

This, after Facebook was summoned to appear before the US Senate Banking Committee over its plans to launch a crypto-currency next year. Consumers would store the currency in a digital wallet called Calibra.

Taking a look at the previous track record of Facebook, it is perhaps understandable why the European Government officials are voicing their concern about the new project from Facebook.

The company said that right from the start, "Calibra will let you send Libra to nearly anyone with a smartphone, as easily and instantly as you might send a text message and at low to no cost". In the future, it will allow paying bills, purchases, and even transportation.

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How much are Libra worth?

Libra is backed by governmental currencies like the U.S. Dollar and the Euro, so it should suffer from the wild value fluctuations that Bitcoin has experienced.

Following today's FOMC meeting where the US Federal Reserve announced no change in interest rates at this time, Fed Chair Jerome Powell was asked a question about crypto. That means you won't receive a physical note or coin when buying the currency.

Since the announcement of Facebook's Libra Coin rolled out, regulations around it become the center point to discuss.

Policymakers across the globe including both Republican and Democratic US lawmakers have expressed their concerns after Facebook unveiled its upcoming cryptocurrency project Libra, which is slated to be released in 2020.

Bitcoin's secretive public/private key pairs system that keeps users' identities unknown and causes global regulators trying to stamp down on money laundering such headaches, has been assimilated. "We can not allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight", tweeted Senator Sherrod Brown, the top Democrat on the Senate Banking Committee.

"We'll also offer dedicated live support to help if you lose your phone or your password - and if someone fraudulently gains access to your account and you lose some Libra as a result, we'll offer you a refund".

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