The Latest on Facebook’s new digital currency (all times local):
Facebook’s introduction of a new digital currency is likely to draw regulatory scrutiny. But New York University law professor Eleanor Fox says initial details about the currency don’t signal any traditional antitrust problems.
Facebook is already under federal investigation over its privacy practices, and along with other technology giants also faces a new antitrust probe in Congress.
Creating its own globe-spanning currency – one that could conceivably threaten banks, national currencies and the privacy of users – isn’t likely to dampen regulators’ interest in Facebook.
Fox says critics will say this is too much power for Facebook and shouldn’t be allowed. But she considers Facebook’s foray “a grass-roots entry into a new field” and says it can increase innovation.
Facebook said Tuesday it plans to launch the currency over the next six to 12 months.
Shares in Western Union are falling after Facebook announced that it is teaming up with more than two dozen partners to create a new digital currency called Libra.
Facebook has a built-in customer base of two billion users that could help it take a share of the booming digital payment market. It could also take business from more traditional payment companies like Western Union, whose shares fell about 2% in morning trading.
Shares in another money transfer company, MoneyGram, doubled to $2.90 in morning trading after it said it would partner with the cryptocurrency service Ripple to improve its cross-border payment system.
Facebook says Libra is expected to launch in the next six to 12 months.
The head of Facebook’s cryptocurrency operation said in a tweet that feedback from customers has been “loud and clear” about keeping social media and financial data separate.
David Marcus said, “We understand we will have to earn your trust.”
Facebook is currently under federal investigation over its privacy practices.
The company on Tuesday unveiled plans to create a new digital currency similar to Bitcoin for global use, one that could drive more e-commerce on its services and boost ads on its platforms. Facebook’s “Libra” currency is expected to roll out in the next six to 12 months.
Facebook’s plan announced Tuesday to introduce a digital currency comes as the company seeks out new revenue sources, said Wedbush Securities analyst Dan Ives.
Facebook plans to launch the currency, called Libra, in six to 12 months.
“With 2 billion users, Facebook is now looking beyond advertising to find other ways to monetize its
Source:: Daily Times