Facebook is launching a new cryptocurrency element that will be embedded into the app.
What We Know:
- Libra is a new cryptocurrency Facebook plans to launch in 2020. Facebook recently founded the Libra Association and partnered with over a dozen companies to bring Libra to life. They have partnered with companies such as: Visa, Uber and PayPal.
- Libra will serve as a digital wallet that will be embedded into Messenger, WhatsApp, as well as on its own as a standalone app. Libra’s functions will be to conduct person to person payments and traditional e-commerce and spending on apps or games owned by Facebook. If it is successful, it will become a very lucrative stream of income for Facebook.
- “We believe this may may prove to be one of the most important initiates in the history of the company to unlock new engagement and revenue streams,” said a RBC Capital Market analyst. Facebook has been a black sheep since their privacy leak. Libra may be just what they need to revive themselves socially and financially.
- Facebook could face an estimated $5 billion in fines to settle the Federal Trade Commission’s inquiry into their data privacy policies. According to Ross Sandler, a Barclays analyst, Libra could produce up to $19 billion in revenue by 2021. This will surely be enough money to get Facebook out the hole.
This story is still developing as Facebook could release new information on the product.
